The signing of the $5 billion Final Investment Decision (FID) for the Bonga North Deep Offshore field by Shell and other investors has been hailed as a testament to Nigeria’s investment-friendly environment under President Bola Tinubu’s administration.
The Democratic Front (TDF) highlighted this development in a statement signed by its Chairman, Danjuma Muhammad, and Secretary, Wale Adedayo. The group noted that the move underscores Nigeria’s continued attractiveness to International Oil Companies (IOCs) for strategic investments.
The statement read in part: “We join President Bola Tinubu in celebrating Shell’s FID on the Bonga North Offshore Field. This investment reflects the success of reforms introduced by the President through Presidential Directives 40, 41, and 42, which have streamlined regulatory approvals, reduced operational costs, and provided competitive fiscal incentives in the oil and gas sector.”
The TDF emphasized the significance of the $5 billion investment, not only for its monetary value but also for the field’s estimated reserves of 350 million barrels of crude oil. This project is expected to boost Nigeria’s oil production and revenue, further cementing its position as Africa’s leading oil producer.
The group also dismissed misconceptions about IOCs exiting Nigeria, pointing out that companies like Shell were making substantial investments in response to the Tinubu administration’s pro-business policies.
“We are thrilled by Shell’s deepwater investment at a time when doubts about Nigeria’s investment climate have been raised. Earlier this year, TotalEnergies also invested $500 million in the Ubeta upstream gas field (OML 58), thanks to the President’s fiscal incentives for foreign direct investments. When operational, this field is projected to produce 350 million standard cubic feet of gas per day, enhancing Nigeria’s profile as a major gas producer”
The Bonga deepwater field, located in OML 118 at a depth exceeding 1,000 meters, was discovered in 1996. According to TDF, the $5 billion investment is the largest in the field’s history and demonstrates the success of President Tinubu’s pro-business governance approach.
“This extraordinary show of confidence in Nigeria’s investment ecosystem validates the administration’s reforms in reducing business risks and removing investment bottlenecks”, the statement added.
TDF expressed optimism that more IOCs would take advantage of the Tinubu administration’s fiscal incentives to invest in Nigeria’s oil and gas sector, driving further economic growth.