Mohamed Garba
The Democratic Front (TDF) has commended President Bola Tinubu’s administration for attracting a $5 billion investment from Shell in the Bonga North Deep Offshore field. This significant investment is a testament to the administration’s investment-friendly policies and reforms, which have created a conducive environment for international oil companies (IOCs) to invest in Nigeria.
The TDF emphasized that the investment is a result of Presidential Directives 40, 41, and 42, which aimed to fast-track regulatory approvals, reduce operational costs, and promote competitive fiscal incentives in the oil and gas sector. The group believes that this investment will not only boost Nigeria’s oil output and revenue but also solidify its position as Africa’s largest oil producer.
In a statement signed by its chairman, Mallam Danjuma Muhammad, and the secretary, Chief Wale Adedayo, the group emphasised that the development demonstrates Nigeria’s continued appeal to International Oil Companies (IOCs) for major investments.
The statement read in part: “We join President Bola Tinubu in celebrating the Final Investment Decision (FID) by Shell on the Bonga North Offshore Field.
It is a thing of pride for us that the investment is the outcome of reforms introduced by the President through the Presidential Directives numbers 40, 41, and 42 to fast-track regulatory approvals, reduce operational costs, and promote competitive fiscal incentives in the oil and gas sector.
We have a conviction that the pertinence of the fresh investment in the sector and indeed the larger Nigeria economy is not only limited to the $5 billion value of the investment but also extends to the field’s potential volume of 350 million barrels of crude oil.
It is a development that is bound to further raise the nation’s oil output and revenue as well as bolster its position as Africa’s largest oil producer.
The TDF also noted that this investment is a confirmation of the success of the current reforms in eliminating investment encumbrances and risks associated with doing business in Nigeria. The group is confident that more IOCs will take advantage of the fiscal incentives introduced by the Tinubu administration to make fresh investments in Nigeria’s oil and gas sector.
