By Damilola Adeleke

The Democratic Front (TDF) has applauded Shell’s recent $5 billion Final Investment Decision (FID) for the Bonga North Deep Offshore field. This landmark decision highlights Nigeria’s appeal as an investment destination and reflects the effectiveness of the Tinubu administration’s pro-business reforms.

According to a statement by TDF Chairman Mallam Danjuma Muhammad and Secretary Chief Wale Adedayo, the investment demonstrates confidence in the fiscal incentives and regulatory reforms introduced by President Bola Tinubu. These reforms, which include Presidential Directives 40, 41, and 42, aim to expedite approvals, reduce costs, and promote competitive incentives in the oil and gas sector.The Bonga North project is poised to significantly impact Nigeria’s oil industry. It is set to produce approximately 350 million barrels of crude oil, boosting the country’s oil output and revenue. Shell, holding a 55% stake in the Bonga Floating Production Storage and Offloading (FPSO) facility, showcases its leading role and commitment to the project’s success.

In addition to Shell’s investment, TotalEnergies’ $500 million commitment to the Ubeta gas field highlights the growing foreign direct investments in Nigeria’s energy sector. The Ubeta field is projected to produce 350 million standard cubic feet of gas per day, enhancing Nigeria’s reputation as a major gas producer and positioning the country as a hub for international energy investments.The TDF notes that this level of investment in the Bonga field is unprecedented since its discovery in 1996. The group credits Tinubu’s economic reforms for removing barriers to investment and fostering a stable and competitive business environment. They believe these developments are a testament to the success of the administration’s policies in eliminating risks associated with doing business in Nigeria.

Economic implications are also evident. The project aligns with Nigeria’s long-term goals of increasing its oil and gas output while maintaining its position as Africa’s largest oil producer. The TDF is optimistic that other international oil companies (IOCs) will follow suit, further bolstering the country’s economy and energy sector.

The Shell Nigeria Exploration and Production Company Limited (SNEPCo) leads the $5 billion initiative, signaling its commitment to the Bonga North project. The investment underscores Nigeria’s growing appeal as a destination for oil and gas investments under the Tinubu administration and marks a significant step toward strengthening the nation’s energy sector.