Shell CEO Praises Nigerian President’s Leadership, Pledges Billions in New Investment
Abuja, Nigeria – Wael Sawan, the Chief Executive Officer of global energy giant Shell Plc, has lauded President Bola Tinubu’s administration for fostering a conducive environment for investment and significantly boosting investor confidence in Nigeria. During a recent meeting at the Presidential Villa, Sawan announced Shell’s intention to deepen and expand its operations in the country, signaling a readiness to commit an additional $20 billion in new investments, a move he directly attributed to the President’s “robust and bold leadership.”
Sawan highlighted that Nigeria, under President Tinubu, is now a prime destination for significant capital injections from international oil companies. This renewed investor appetite is a testament to the positive shifts in the nation’s economic climate.
Shell’s existing and planned investments underscore this commitment. The company has recently allocated substantial funds to key projects, including $5 billion towards the Bonga North development, $2 billion for the HI project, and further investment in the crucial gas project supplying the Nigeria Liquefied Natural Gas (NLNG) facility. These substantial commitments demonstrate Shell’s long-term vision for Nigeria, a vision made more attractive by the current stable economic landscape.
“We have really been in a space where we are very keen to invest in Nigeria,” Sawan remarked. “But I would say this has not always been the case. Your leadership and your vision have created an investment climate over the last few years that, I will be very honest with you, propelled us to invest, in particular, also as we compare to other investments around the world.”
He emphasized the critical importance of stability for long-term corporate investments. “Stability in today’s environment will honestly have a premium for corporates because we are investing not for one administration or five or 10 years, we want to invest for 20, 30, 40 years and in the case of Nigeria, for many, many decades,” Sawan stated.
Deepening Engagement and Future Prospects
Shell’s renewed interest extends to its existing portfolio, with a notable deepening of engagement in Block OML 118, specifically the Bonga Block. Sawan elaborated on the strategic acquisition of Total Energies’ stake in this area, underscoring Shell’s intent to further solidify its presence.
However, the most significant announcement revolved around the Bonga Southwest project. Sawan revealed that Shell, in collaboration with its partners, is actively developing a project that could potentially attract approximately $20 billion in Foreign Direct Investment (FDI). This substantial sum would be split equally between capital expenditure and operating expenses, bringing significant economic activity into Nigeria.
“We think there is more to invest here, and we understand the vision that you have for the country. And so we are indeed working on a project, Bonga Southwest, that could, if we reach an FID stage, see us, with our partners, invest around $20 billion in foreign direct investment, half of which will be capital. The other half will be the operating expenses and the like that will come into the country,” Sawan explained. He further described this potential venture as “one of the biggest, I would say, energy projects in the world.”
The company also sees continued opportunities for future investment, pointing to projects like Bonga South, which is further along the development pipeline.
A “Sea Change” in Investment Climate
Sawan characterized Shell’s current investment posture as a “sea change” compared to several years ago, a period when the company was reportedly scaling back its investments in Nigeria. He expressed gratitude to President Tinubu for the “incremental incentives” that have paved the way for the potential investment in the Bonga Southwest project.
The Shell CEO also extended his commendation to President Tinubu’s team, describing them as “outstanding professionals.” He noted that the caliber of individuals within the administration, particularly those involved in energy matters, are “amongst the best that we are dealing with anywhere in the world.” This high level of professionalism instills confidence in Shell and its partners to continue investing in Nigeria.
Presidential Commitment to Investment Incentives
In response to Shell’s commitments, President Tinubu has taken decisive action to facilitate the Bonga Southwest project. He has approved the gazetting of targeted, investment-linked incentives designed to support this significant deep offshore oil development.
The President has directed his Special Adviser on Energy, Mrs. Olu Arowolo-Verheijen, to expedite the gazetting process, ensuring alignment with Nigeria’s existing legal and fiscal frameworks. President Tinubu clarified that these incentives are not indiscriminate but are specifically designed for new capital, incremental production, robust local content development, and enhanced in-country value addition.
“These incentives are not blanket concessions,” the President stated. “They are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition.”
Setting a clear expectation for the project’s progression, President Tinubu added, “My expectation is clear: Bonga South West must reach a Final Investment Decision within the first term of this administration.” This directive underscores the administration’s urgency and commitment to seeing major investment projects come to fruition.
