Oil giant Shell Companies in Nigeria has announced plans to invest US$20 billion in the Bonga South West oil project, a development hailed as a major boost for the Nigerian economy.
The announcement was made on Thursday after President Bola Ahmed Tinubu received Shell CEO Wael Sawan at the Presidential Villa, Abuja. Speaking with State House correspondents, NNPCL Group Chief Executive Officer Bashir Bayo Ojulari explained the significance of the investment and its expected impact on the country.
According to Ojulari, the US$20 billion investment is not just a financial commitment—it represents a wide-ranging economic opportunity that will create jobs, revive idle fabrication yards, and support local industries involved in oil and gas. “Most of our fabrication yards, closed for years due to lack of projects, will come back to life. Nigerians have made huge investments in those yards, which have lain idle for far too long,” Ojulari said.
Ojulari emphasized that the investment reflects growing investor confidence in Nigeria’s economy, a confidence he attributes to the policies and leadership of President Tinubu. “The economic climate established by President Tinubu’s administration has restored investor confidence,” he said. He added that Shell also committed to pursuing an additional US$20 billion in opportunities over the next few years, underlining the strong relationship between the company and the Nigerian government.
“This confidence comes from what investors can touch and feel, not just talk about. They see transparency and commitment to the President’s agenda,” Ojulari said. He also noted that the Bonga South West project alone involves capital investment close to US$10 billion, with additional operating expenses expected to create thousands of jobs over the field’s 20- to 25-year life span.
The NNPCL boss explained that the project’s construction and operational phases will generate a wide range of employment opportunities. “When we talk about these big numbers, we need to clarify what they mean: more jobs from construction, giving Nigerians ample opportunities to participate. Beyond the project phase, completing it means employment for the next 20 to 25 years over the field’s life,” Ojulari said. He highlighted that local suppliers of materials, manpower, and maintenance services will also benefit, ensuring the investment has a ripple effect across the economy.
Ojulari stressed that NNPCL, as the concession holder for Nigerian Production Sharing Contracts (PSCs) with international investors like Shell, Chevron, ExxonMobil, and TotalEnergies, plays a critical role in ensuring that promises made by investors are authentic, transparent, and in the national interest. “Our responsibility is to be the conscience of the government and Nigerians—ensuring the assumptions and promises made are correct and authentic. We’ve been doing that, and we hope to complete it soon, securing Mr President’s support for the final investment decision,” he added.
Ojulari further said that Shell’s CEO personally visited the Villa to reaffirm the company’s commitment to continued investment in Nigeria. “Today was about Shell expressing gratitude to Mr President for his administration’s transparency and personal commitment to the investment climate while showing their own commitment to continued investment in Nigeria,” he said.
He also highlighted that in the last one-and-a-half years, Shell had completed the divestment of its onshore Joint Venture assets to Renaissance, a move he said had demonstrated the government’s commitment to enabling investor entry into the Nigerian oil and gas sector. “That brought confidence to the international community, including Shell. Having completed that divestment, Shell took a final investment decision of US$5 billion for Bonga North development. Subsequently, they approved another US$2 billion for shallow-water gas development,” Ojulari said. Overall, he added, Shell alone has invested over US$7 billion since the President announced incentives for the oil and gas sector.
The Bonga South West oil project is strategically important for Nigeria. Located offshore, it represents one of the country’s largest deep-water oil fields, with significant potential to boost production and government revenues. The project is expected to provide a steady stream of foreign direct investment (FDI) and create opportunities for Nigerian companies involved in fabrication, logistics, and maintenance.
The scale of the investment is expected to have widespread socio-economic benefits. The project will revive moribund fabrication yards that had been inactive for years, bringing back skilled workers and stimulating local economies in coastal communities. The creation of direct and indirect jobs will also contribute to poverty reduction and improved living standards in areas connected to the oil project.
Ojulari highlighted that the economic benefits go beyond the construction phase. “Completing the project means sustained employment and business opportunities for decades. The operating expenditure alone—covering suppliers, manpower, and maintenance—will have a major impact,” he said.
The meeting at the Presidential Villa also reflected the cooperative relationship between the Nigerian government and multinational oil companies. Officials stressed that maintaining transparency, ensuring regulatory compliance, and providing a stable investment climate were key to attracting and retaining foreign capital.
President Tinubu’s administration has made it a priority to streamline approvals and offer incentives for investors in critical sectors such as oil and gas. This has reportedly encouraged companies like Shell to commit significant resources to Nigerian projects, reinforcing the country’s position as a major player in global energy markets.
With Shell’s announcement, Nigeria’s oil and gas sector is poised for a new wave of growth and modernization. Analysts say that projects like Bonga South West are essential to boosting production, generating jobs, and sustaining long-term economic development.