NNPCL says Shell investment in Nigeria could reach $20bn, citing Tinubu’s reforms and improved investor confidence in the oil and gas sector

The Group Chief Executive of the Nigerian National Petroleum Company Limited has said global energy major Shell Plc plans to deploy about 20 billion dollars in fresh capital into Nigeria’s oil and gas sector over the coming years, citing improved investor confidence driven by recent policy reforms.

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Speaking to State House correspondents on Thursday, Bayo Ojulari said the projected Shell investment in Nigeria reflects a growing international assessment that the country’s operating environment has become more competitive under President Bola Tinubu.

Ojulari spoke after a high-level meeting between Tinubu and Shell’s Chief Executive Officer, Wael Sawan, describing the engagement as historic, being the first time a sitting Nigerian president met directly with a Shell global chairman.

According to him, the renewed investment appetite demonstrates how Nigeria is repositioning itself in an increasingly competitive global energy market where capital is constantly being courted by emerging producers in regions such as Guyana and parts of the Far East.

Ojulari said Shell’s commitment follows the company’s deployment of more than seven billion dollars into Nigeria since the introduction of executive orders by Tinubu in 2024, aimed at strengthening incentives for investors in the energy sector.

“One of the great things the President did was to announce those executive orders to put additional incentives in place to attract investments,” he said, noting that the measures helped restore confidence among international energy firms.

He explained that Shell’s renewed engagement was anchored on three major upstream decisions, beginning with the divestment of its onshore joint venture assets to Renaissance, a move he described as a powerful signal to the global investment community.

That transaction, Ojulari said, demonstrated the administration’s commitment to allowing capital to flow freely in and out of the Nigerian market, thereby improving credibility and transparency.

Following the divestment, Shell reached a final investment decision on a five billion dollar commitment to the Bonga North deepwater project and later approved an additional two billion dollars for a shallow-water gas development initiative.

Ojulari disclosed that discussions during Thursday’s meeting also focused on the Bonga Southwest deepwater project, which could require up to 10 billion dollars in capital expenditure if approved, alongside significant operating costs.

He said approval of such projects would have far-reaching economic benefits, including job creation across fabrication, construction, logistics and supply chain activities over the 20 to 30-year lifespan of oil and gas developments.

“For many years, fabrication yards have been idle because there were no projects. Those yards will come back to life,” Ojulari said, describing the potential revival as a powerful boost for employment and local industry.

The NNPCL chief linked the improved outlook directly to Tinubu’s reform agenda, noting that while the Petroleum Industry Act of 2021 laid a strong legal foundation, additional incentives were required to keep Nigeria competitive globally.

He said the executive orders helped fine-tune the country’s investment framework in response to aggressive incentive packages being offered by rival oil-producing nations.

Ojulari added that NNPCL would continue working closely with investors and government institutions to advance credible projects, stressing the company’s responsibility to safeguard national interests.

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“Our responsibility is to be the conscience of the government and the conscience of Nigerians, ensuring that the assumptions and promises being made are correct and authentic,” he said.