Tinubu Clears New Incentive Package to Unlock Offshore Oil Investment

President Bola Tinubu has approved a new package of investment-linked incentives for Shell’s proposed Bonga South West deepwater oil project, signalling Nigeria’s renewed push to attract capital into its offshore petroleum sector.

According to a Reuters report dated January 23, 2026, the incentives are performance-based rather than broad concessions, aligning with Nigeria’s evolving oil and gas regulatory framework and aimed at stimulating fresh investments.

The approval underscores the growing importance of offshore assets in sustaining Nigeria’s crude oil production, especially as onshore operations continue to face security and operational challenges. Deepwater projects, though capital-intensive, are seen as more stable and critical to medium-term output growth.

Reuters noted that President Tinubu expects Shell to reach a Final Investment Decision (FID) on the Bonga South West project within his first term. Shell has reportedly invested about $7 billion in Nigeria since Tinubu assumed office in 2023 and has outlined further plans linked to the project.

Analysts say the move could boost government revenues, strengthen foreign exchange inflows and improve investor confidence, though challenges around contract stability and regulatory execution remain.

If implemented as planned, the Bonga South West project could set a new benchmark for deepwater investments in Nigeria’s offshore oil sector.