- Tinubu’s Executive Orders Spur $20bn Investment Interest from Shell
- Ojulari explained that while the Petroleum Industry Act provided a solid framework for reforms
- Discussions during the meeting also focused on Shell’s proposed Bonga Southwest development
Global energy major Shell Plc has signalled plans to invest up to $20 billion more in Nigeria over the next few years, indicating renewed investor confidence in the country’s oil and gas sector following recent policy reforms by the Federal Government.
Eko Hot Blog reports that the disclosure was made on Wednesday by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, after a meeting between President Bola Ahmed Tinubu and Shell’s global leadership, led by its Chief Executive Officer, Wael Sawan, at the State House in Abuja.
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Ojulari said the visit marked the first formal engagement between President Tinubu and Shell’s global leadership and was intended to express appreciation for the executive orders issued by the President in early 2025 to improve Nigeria’s investment climate.
He explained that while the Petroleum Industry Act (PIA) provided a solid framework for reforms, additional policy incentives were necessary to keep Nigeria competitive in the global race for energy investment.
“The competition for investment is global,” Ojulari said, noting that several African countries, Guyana and parts of the Far East were continuously adjusting their fiscal and regulatory frameworks to attract capital.
According to him, the executive orders introduced by the Tinubu administration have already enabled Shell to achieve three major milestones within the last 18 months.
These include the successful divestment of Shell’s onshore joint venture assets to Renaissance, a move Ojulari said demonstrated the government’s commitment to allowing investors both to enter and exit the Nigerian market freely.
“That transaction alone sent a strong signal to the international investment community and restored confidence, including for Shell,” he said.
Following the divestment, Shell took a final investment decision (FID) on the $5 billion Bonga North deepwater project and later approved another $2 billion investment in a shallow-water gas development.
Ojulari said that, in total, Shell has committed over $7 billion in new investments in Nigeria since the introduction of the additional incentives.
He disclosed that Shell has now formally indicated interest in pursuing further investment opportunities estimated at $20 billion, citing confidence in President Tinubu’s leadership, policy clarity and commitment to transparency.
Discussions during the meeting also focused on Shell’s proposed Bonga Southwest development, a major deepwater project that could require capital expenditure of nearly $10 billion, in addition to long-term operational costs.
Ojulari noted that such large-scale projects would have far-reaching economic benefits, including job creation, revival of dormant fabrication yards, and sustained employment across the oil and gas value chain over the 20–30-year lifespan of the projects.
“For many years, fabrication yards have been idle due to lack of projects. These investments will bring them back to life,” he said, adding that Nigerians would benefit from construction, maintenance, logistics and manpower contracts for decades.
He reaffirmed that NNPCL, as concession holder under Nigeria’s production sharing contracts with international oil companies, would continue to work with investors and relevant government agencies to ensure that proposed projects meet regulatory and commercial standards.
“Our responsibility is to safeguard national interest by ensuring that all assumptions and commitments are credible and beneficial to Nigerians,” Ojulari said, expressing optimism that more final investment decisions would be reached with sustained government support.
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