Nigeria’s President Tinubu Approves Hefty Tax Incentive for Shell’s $20B Oil Project BODY: Lagos, Nigeria – In a bid to bolster the struggling petroleum sector, Nigeria’s President Bola Tinubu has approved a significant tax incentive for Shell Plc’s proposed Bonga Southwest Aparo deepwater oil project. This strategic move aims to accelerate investment and may be replicated for other international oil companies.
The project, set to produce 150,000 barrels of oil per day, is poised to attract around $20 billion in foreign investment.
The incentive offers a $11. 50 rebate per barrel produced, more than doubling the standard tax credit. This measure is part of President Tinubu’s broader reforms introduced since 2023, seeking to restore investor confidence and address issues such as crude theft, pipeline vandalism, and regulatory uncertainty.
The Bonga Southwest Aparo project, one of Nigeria’s most significant deepwater developments, marks the country’s first deepwater Final Investment Decision since 2008. Shell CEO Wael Sawan has emphasized the potential scale of the investment, which is expected to provide a much-needed boost to the region’s energy sector and position Nigeria as a competitive global energy investment destination.
As the Nigerian government fast — tracks this massive oil investment, the transformative changes anticipated in the country’s petroleum sector could extend benefits beyond the industry into the broader economy and society.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Adekunle Agbetiloye
