President Bola Ahmed Tinubu’s administration is making significant strides in positioning Nigeria as a global leader in energy innovation and investment.
A testament to this is Shell’s recent announcement of the Final Investment Decision (FID) on the Bonga North Deep Offshore Field, a landmark development that signifies Nigeria’s first deepwater oil project in over a decade.
The Bonga North project, with an estimated $5 billion investment, underscores the transformative effect of the President’s policies in attracting vital investments into the oil and gas sector.
In a statement celebrating the decision, President Tinubu lauded Shell and its partners for their commitment to the Bonga North project, highlighting the role of such investments in realizing the goals of his administration’s Renewed Hope Agenda.
“The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people.
“We designed our policies and reforms from the start of my administration to achieve this goal. Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts.”
President Bola Ahmed Tinubu
The announcement of the Bonga North FID follows a series of significant steps taken by the President’s administration to revitalize Nigeria’s energy sector.
In July 2023, Tinubu engaged with Shell’s global leadership, where he stressed the government’s dedication to fostering an environment that is “stable, predictable, and investor-friendly.”
These discussions culminated in the establishment of clear, actionable policy directives aimed at improving the ease of doing business within Nigeria’s oil and gas sector.
The Bonga North project is the second major initiative arising from the Presidential Directives issued in early 2024. These directives—specifically Directives 40, 41, and 42—are designed to enhance regulatory clarity, accelerate project timelines, and offer competitive fiscal incentives to investors.
The first success story under this initiative was the FID approval for the Ubeta oilfield (OML 58) in early 2024.
After lying dormant for decades, the Ubeta field will produce 350 million standard cubic feet of gas per day, contributing significantly to Nigeria’s domestic gas supply and enhancing its position in the global energy market.
New Era for Nigeria’s Energy Future
As President Tinubu continues to engage with global energy stakeholders, the country’s energy landscape is poised for transformation.
Shell’s decision to invest in the Bonga North field is a testament to the strategic alignment between the President’s administration and the oil and gas industry.
Ms. Olu Arowolo Verheijen, Special Adviser to the President on Energy, emphasized that the Bonga North milestone dispels misconceptions about international oil companies (IOCs) leaving Nigeria.
Rather, she pointed out that these companies are pivoting their investments toward deepwater and integrated gas projects, which align with President Tinubu’s vision of positioning Nigeria as a global energy hub.
“We are witnessing a strategic pivot of IOCs-powered capital and technical capacity to deepwater and integrated gas projects.
“The divestments from onshore operations create opportunities for local oil and gas companies to expand and thrive, building a strong foundation for Nigeria’s energy future.”
Ms. Olu Arowolo Verheijen, Special Adviser to the President on Energy
Ms. Verheijen also underscored the broader implications of the Bonga North and Ubeta projects. These investments are expected to trigger a wave of new investments in the country’s power generation, transportation, and manufacturing sectors.
Looking ahead to 2025, she anticipated that additional FIDs from both international and domestic players will mark the dawn of a new era of growth and opportunity for Nigeria.
The Bonga North FID marks a significant milestone in Nigeria’s quest to become a leading player in the global energy market.
President Tinubu’s strategic engagement with industry stakeholders, paired with his administration’s focus on regulatory reforms and fiscal incentives, has created an environment conducive to large-scale investments.
With both the Bonga North and Ubeta projects on track, Nigeria is poised to experience a renaissance in its energy sector, underpinned by robust investments that will benefit its people for generations to come.
As Ms. Verheijen aptly noted, the success of these initiatives will undoubtedly propel Nigeria toward its energy future, positioning the country as a true global energy hub. The road ahead looks promising, and Nigeria’s energy potential is finally being realized.
READ ALSO: UK Faces EU Court Over Post-Brexit Compliance Disputes
