FG grants $20bn tax incentive to Shell for development of Bonga Deepwater project
Lagos, July 2026 -The federal government has approved $20 billion tax incentive to Shell for the development of its Bonga Southwest Aparo Deepwater oil project.
Under the arrangement, Nigeria is offering a rebate of $11.50 for every barrel of crude produced.by Shell.
According to Bloomberg report, the incentive was granted in production-linked tax credit as intensifies efforts to revive investment in the country’s petroleum sector.
The Bonga Southwest Aparo project is expected to deliver 150,000 barrels per day (bpd) of crude oil alongside 140 million standard cubic feet per day of gas upon completion
The incentive, according to experts, is more than double the standard tax credit available under existing regulations and is expected to be extended to other oil producers with similar projects.
The Nigerian National Petroleum Company (NNPC) Limited estimates that Bonga Southwest Aparo will attract about $20 billion in foreign direct investment and produce approximately 150,000 barrels of crude oil per day once operational
Bashir Ojulari, the Group Chief Executive of NNPC), described the approval as a testament to the President’s leadership, NNPC’s disciplined execution and ability to structure complex, bankable transactions that deliver value for the country.
