By Danladi Ahmed
The Tinubu Media Support Group (TMSG) says the tax incentives granted Shell by President Bola Tinubu is a practical demonstration of his pro-business mindset towards attracting major foreign investments into the country.
In a statement signed by its Chairman, Emeka Nwankpa and Secretary, Dapo Okubanjo, the group emphasised that it aligns with the fiscal incentives introduced by the President Tinubu administration to enable new foreign investments in the country’s oil and gas sector.
It said: “The production-based tax credit which the President Bola Tinubu administration has approved for Shell’s Bonga Southwest Deepwater oil project is aimed at incentivising the oil major to speed up its Final Investment Decision (FID) on the $20bn project
“The approval of $11.50 tax on each barrel from the deepwater project came in the aftermath of a January 2026 meeting between the President and a Shell delegation led by its Global Chief Executive Officer, Wael Sawan, on a project that had been a subject of deliberations for nearly 20 years.
“We dare say that the decision to grant tax incentives that are twice the standard of the global rate is a strong statement of intent that will not only clear the final hurdle for the deepwater project but also show the world that Nigeria is serious about doing big business in every sector.
“We recall that President Tinubu had assured the delegation of incentives which he insisted were not blanket concessions but tax incentives aimed at bringing in new capital without unduly undermining government revenues.
“Now six months down the line, the federal government team, including the Nigerian National Petroleum Company Limited (NNPCL) and the Nigeria Revenue Service (NRS), led by the Special Adviser to the President on Energy, Ms Olu Verheijen, have concluded technical and commercial negotiations with Shell on the matter.
“What it means is that the stage is now set for a final investment decision by Shell on the Bonga Southwest Aparo project, which is expected to attract around $20 billion in foreign investment and produce 150,000 barrels of oil per day and 140 million cubic feet of gas.
“And as the President said back in January when he hosted the Shell team, we are convinced that the project has the potential to create thousands of direct and indirect jobs, as well as broaden the government revenue base from the sector.
“We are also aware that the policy will extend to other oil producers’ new deepwater projects and ensure more foreign investors in a sector that has not had new investors since at least 2008. This is what President Tinubu promised in the run-up to the 2023 elections.”
The group added that the measures are part of broader concrete reform measures by President Tinubu to restore confidence in the Nigerian economy, stimulate investment, create more jobs, energise productivity and accelerate general national growth and development towards hitting President Tinubu’s vision of a $1 trillion economy by 2030.
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