What specific tax credit did Nigeria grant Shell for the Bonga Southwest Aparo project, and how does it compare to the standard rate?

Nigeria granted Shell Plc a production-linked tax credit of $11.50 per barrel of crude produced for the Bonga Southwest Aparo deepwater project — more than double the standard amount. This incentive was approved by President Bola Tinubu as part of efforts to push the project toward a final investment decision and will be extended to other oil majors for new deepwater projects until at least 2029.

What are the expected investment, output, and broader policy implications of the Bonga Southwest Aparo project?

The Bonga Southwest Aparo project is expected to attract $20 billion in foreign direct investment and produce 150,000 barrels of crude oil per day upon completion, according to the state oil company. It forms part of a wider set of executive orders introduced since Tinubu took office in 2023 to revive Nigeria’s oil sector — which has been hampered by theft, vandalism, aging infrastructure, and declining investment. While these measures have contributed to a rise in output to 1.56 million barrels per day in June (the highest monthly average since April 2020), the legal durability of such executive orders remains uncertain, as they can be voided by courts or amended by future presidents; Shell has therefore requested formal publication of the tax-credit order in the official government gazette to make it legally binding, a process officials are now undertaking.

Shell Gets More Tax Relief on $20 Billion Nigerian Oil Project

Jul 14, 2026

Nigeria granted Shell Plc enhanced tax credits for its $20 billion Bonga Southwest deepwater project to boost crude production. The incentive, valid until 2029, offers $11.50 per barrel rebate and may apply to other new deepwater projects.

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