The Bonga South-West Aparo project has remained stalled for years due to uncertain fiscal terms, rising project costs, and global investment competition. Analysts say the newly approved incentives are designed to address those concerns and make the project commercially viable.

President Tinubu had earlier directed energy stakeholders to fast-track policy and regulatory enablers necessary to bring the strategic asset to the final investment decision stage.

Officials say the latest move reflects the administration’s broader strategy to revive Nigeria’s upstream sector, particularly deepwater exploration where major international oil companies remain active despite divestments from onshore assets.

NNPC: A Turning Point for Nigeria’s Energy Sector

Group Chief Executive Officer of NNPC Ltd, Mele Kyari, described the approval as a strong signal of leadership and commitment to energy sector reform.

He said the decision demonstrates the federal government’s determination to create an investor-friendly environment capable of unlocking major oil and gas projects that have been delayed for years.

Industry observers believe the Bonga South-West Aparo development could significantly increase Nigeria’s deepwater output. It would complement production from the existing Bonga Oil Field, which remains one of the country’s largest offshore facilities.

Economic and Production Impact

Once operational, the project is expected to generate billions of dollars in new investment inflows. Additionally, to increase Nigeria’s offshore crude production capacity, strengthen government revenues from petroleum exports and create jobs and expand local content participation in the oil sector.

Energy analysts also see the move as part of a broader effort by the Tinubu administration to restore Nigeria’s competitiveness in global energy investment, particularly as other oil-producing countries continue to attract large-scale upstream capital.