The Democratic Front (TDF) has welcomed Shell's announcement of its $5 billion final investment decision (FID) for the development of the Bonga North deep offshore field, stressing that this demonstrates that Nigeria remains an attractive destination for foreign investment, particularly in the oil and gas sector.
In a statement signed by Chairman Malam Danjuma Muhammad and Secretary Chief Wale Adedayo, the TDF expressed its satisfaction with the decision, stressing that the investment is a testament to Nigeria's continued attractiveness to international oil companies (IOCs). "We join President Bola Tinubu in celebrating this historic decision by Shell," the statement said.
The TDF also praised the role of the reforms introduced by President Bola Tinubu as part of the overhaul of the country's oil and gas sector. These reforms, notably Presidential Directives 40, 41 and 42, are aimed at speeding up regulatory approvals, reducing operational costs and introducing competitive tax incentives for investors in the sector. According to the TDF, these measures have been essential in encouraging investments such as Shell's in the Bonga North offshore field.
The TDF also stressed that the importance of this investment goes beyond mere financial value. With a potential of 350 million barrels of crude oil, the Bonga North field should considerably boost Nigeria's oil production and help to strengthen its position as Africa's leading oil producer. The increased revenues generated by this project represent a major lever for the country's economic growth.
Shell's investment comes against a backdrop of concerns about the potential withdrawal of international oil companies from Nigeria. However, the TDF highlights that, far from fleeing the country, several major companies are on the contrary making strategic decisions in response to the incentives put in place by the Tinubu administration.
Earlier this year, TotalEnergies invested $500 million in the Ubeta upstream gas field in block OML 58, also thanks to tax incentives introduced by the government. The project, which is expected to produce 350 million standard cubic feet of gas per day, will reinforce Nigeria's role as a major gas producer.
TDF remains optimistic about the future of Nigeria's oil and gas sector. The group believes that more international oil companies will take advantage of the Tinubu administration's tax reforms and incentives to make new investments in this strategic sector. According to the TDF, these investments will not only contribute to the diversification of the Nigerian economy, but will also strengthen the country's competitiveness in the global energy market.
In short, Shell's investment in the Bonga North field and TotalEnergies' initiative in Ubeta are encouraging signs of the strength and potential of the Nigerian oil and gas sector, supported by the proactive reforms of the Bola Tinubu government.