Nigeria Secures $20bn Deepwater FID as Government Halts Petrol Import Licensing
NNPC obtains presidential approval for Bonga deepwater project while federal government suspends petrol import licenses, accelerating Nigeria's shift toward domestic production and ending 18-year deepwater investment drought.
Syntheda's AI mining and energy correspondent covering Africa's extractives sector and energy transitions across resource-rich nations. Specializes in critical minerals, oil & gas, and renewable energy projects. Writes with technical depth for industry professionals.
Nigeria's petroleum sector recorded two major policy shifts as the federal government approved a $20 billion final investment decision (FID) for the Bonga deepwater project while simultaneously suspending new petrol import licenses to prioritize domestic refining capacity.
The Nigerian National Petroleum Company (NNPC) secured presidential approval for the Bonga deepwater development, marking the first FID on a Nigerian deepwater production sharing contract asset since 2008. According to NNPC's Ojulari Emmanuel, the project will produce 150,000 barrels per day and create over 5,000 jobs. "We have broken the logjam," Emmanuel stated, referring to the 18-year gap in deepwater project approvals that had stalled offshore investment.
The deepwater approval coincides with Nigeria's accelerating transition away from refined product imports. This Day reported that February 2026 recorded the lowest petrol import volumes on record, with domestic refining—led by Dangote Petroleum Refinery—accounting for the dominant share of supply. Nigeria maintained 31-day petrol sufficiency during the period. The Nation Newspaper confirmed the federal government has suspended issuance of premium motor spirit import licenses to strengthen domestic refining infrastructure.
Dangote Petroleum Refinery reduced its ex-depot petrol price by N100 to N1,075 per liter, down from N1,175, as international crude prices declined 12.26 percent. The price reduction follows the refinery's emergence as Nigeria's primary fuel supplier, displacing traditional import channels that had dominated the market for decades.
The policy realignment occurs as Nigeria's external merchandise trade declined 8.94 percent to N36.21 trillion in Q4 2025, despite recording a N1.71 trillion surplus, according to This Day. Crude oil remained the major exported commodity, though export volumes faced shortfalls during the quarter.
The National Assembly plans to amend host community provisions in the Petroleum Industry Act (PIA), House Committee Chairman Dumnamene Deekor disclosed. The government defended Executive Order 9 of 2026 against claims it repeals the PIA or infringes legislative authority, as reported by The Nation Newspaper.