Tinubu Unlocks Billions: Approves Shell’s Bonga Incentives, Okays Drilling in Ogun’s Tongeji Island
ABUJA — President Bola Ahmed Tinubu has taken definitive steps to expand Nigeria’s hydrocarbon footprint, approving a comprehensive incentive package to unlock Shell’s multi-billion dollar Bonga Southwest deepwater project and officially greenlighting commercial oil drilling at Tongeji Island in Ogun State.
The twin directives, issued this week, signal a massive push to boost national crude production and open new economic corridors in the South-West.
Bonga Southwest: The $10 Billion Game Changer
During a high-level meeting at the State House on Thursday with the global leadership of Shell Plc, led by CEO Wael Sawan, President Tinubu approved “targeted, investment-linked incentives” designed to fast-track the Bonga Southwest project.
The project, which has suffered years of delays, is expected to attract an estimated $10 billion in new capital.
“These incentives are not blanket concessions,” President Tinubu told the Shell delegation. “They are ring-fenced and investment-linked. My expectation is clear: Bonga Southwest must reach a Final Investment Decision (FID) within the first term of this administration.”
Bashir Ojulari, a senior executive at the meeting, revealed that Shell is now poised to invest up to $20 billion in Nigeria over the next few years, citing the administration’s “bold reforms” as the primary driver for renewed investor confidence.
Ogun joins the “Oil League”
In a simultaneous development, Ogun State Governor Dapo Abiodun confirmed on Thursday that President Tinubu has officially approved the commencement of commercial oil drilling at Tongeji Island, a strategic location in the Ipokia Local Government Area.
This approval effectively ends years of speculation and positions Ogun to join the league of oil-producing states, a status that guarantees increased revenue from the 13% derivation fund.
“Mr. President has approved the commencement of commercial oil drilling operations at Tongeji Island, and you will begin to see a lot of activity there soon,” Governor Abiodun announced while receiving the Flag Officer Commanding, Western Naval Command, Rear Admiral Abubakar Mustapha.
The Governor noted that the project would bring massive economic inclusion to the coastal communities and strengthen Nigeria’s blue economy.
Olokola Port & Ondo Axis
Beyond drilling, the President also approved the immediate takeoff of the Olokola Deep Seaport (now renamed the Blue Marine Economic Zone) in Ogun Waterside.
The development is expected to create a seamless economic corridor stretching from the Lagos-Ondo axis, complementing the recently revalidated Ondo Deep Sea Port. Security agencies have already received marching orders to secure the maritime space from the Benin Republic border down to the Ondo coast to ensure these high-value assets operate without disruption.
Rear Admiral Mustapha confirmed that the Navy would upgrade its outpost on Tongeji Island to a Forward Operations Base (FOB) to protect the new oil infrastructure.