Udeme Akpan with Agency Report
The Federal Government has approved an enhanced production-linked tax credit of $11.50 per barrel for Shell Plc and its partners in a move aimed at unlocking the long-delayed Bonga Southwest Aparo deepwater oil project, a development expected to attract about $20 billion in foreign direct investment (FDI) into Nigeria.
The incentive, approved by President Bola Tinubu, is designed to pave the way for a Final Investment Decision (FID) on the offshore project, which has remained stalled for nearly two decades despite its strategic importance to Nigeria’s oil production ambitions.
According to a Bloomberg report, President Tinubu approved the gazetting of investment-linked fiscal incentives on January 22 to support the development of the Bonga Southwest Aparo field.
The publication, citing sources familiar with the negotiations, said Shell and its partners would receive a production-linked tax credit of $11.50 for every barrel of crude produced—more than double the standard incentive provided under the Petroleum Industry Act (PIA).
