FG Pledges Support for Dangote Refinery, Lauds Contributions to Nigeria

• Grants Shell enhanced tax credit for $20bn Aparo deepwater project 

• Oil giant awards $518m contracts to Nigerian firms,  boosts local content  

• Engages 123 indigenous companies

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

The federal government on Monday described the Dangote Petroleum Refinery & Petrochemicals as a source of national pride and Nigeria’s most transformative industrial investments in recent times.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said that the government will continue to provide the policy and regulatory support needed to maximise the company’s contribution to the country’s energy security, industrialisation and economic growth.

The minister gave the commendation during a visit to the refinery in Lekki, Lagos, alongside the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, and the leadership of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The development came as it emerged that Nigeria has approved an enhanced production-linked tax credit for Shell Plc’s $20 billion Bonga Southwest Aparo deepwater project as part of efforts to accelerate investment in the country’s upstream oil sector and boost crude production, according to a Bloomberg report.

But addressing the management of the refinery after a tour of the facility, Ekpo said what the delegation witnessed underscored the importance of supporting indigenous investments capable of transforming Nigeria’s economy, creating employment and strengthening the country’s energy security.

According to him, the refinery stands as compelling evidence of what Nigerian enterprise can achieve and deserves the full backing of government institutions.

“What we have come to see today is an eye opener. A Nigerian has taken us to this level. Whether in terms of employment or providing for the needs of the nation, this is something we should all be proud of,” Ekpo said.

The minister assured the refinery of continued collaboration from both policymakers and regulators, stressing that the government would continue to provide an enabling environment for investments that advance national development.

Also speaking during the visit, Chairman of the Board of the NUPRC, Senator Magnus Abe, described the Dangote Petroleum Refinery as one of the most remarkable industrial accomplishments ever undertaken in Nigeria.

He said the sheer scale of the project represents an achievement that many Nigerians are yet to fully appreciate. “I don’t think any of us fully appreciates what has been achieved here by Nigerians in Nigeria. We are all very proud of this accomplishment,” Abe said.

Group Vice President, Oil & Gas, Dangote Industries Limited, Devakumar Edwin, who conducted the ministers and NUPRC delegation on a tour of the refinery, commended them for proceeding with the visit despite the heavy rainfall, describing it as a demonstration of their commitment to Nigeria’s industrial development.

He explained that the refinery was conceived as part of the vision of the President and Chief Executive of Dangote Industries Limited, Aliko Dangote, to ensure that Nigeria adds value to its abundant natural resources rather than exporting raw materials and importing finished products.

According to him, the Group’s Vision 2030 is centred on leading Africa’s industrial transformation by building globally competitive businesses that make the continent more self-sufficient and prosperous, while transforming Africa’s natural resources into essential products that create jobs, generate value and drive sustainable economic growth.

Edwin noted that beyond its scale, the Dangote Petroleum Refinery has been designed as one of the world’s most environmentally advanced refining complexes, incorporating technologies that meet stringent European Union and United States Environmental Protection Agency (US EPA) standards.

He said the facility is equipped with ambient air quality monitoring stations, mobile environmental monitoring systems and other advanced emissions control technologies that make it one of the cleanest and most environmentally responsible refineries globally.

“Our objective has never been simply to build the largest refinery in Africa. It has always been to build one of the world’s best, producing cleaner fuels that improve public health, protect the environment and position Nigeria as a leading global refining and manufacturing hub,” he said.

Meanwhile, Nigeria has approved an enhanced production-linked tax credit for Shell Plc’s $20 billion Bonga Southwest Aparo deepwater project as part of efforts to accelerate investment in the country’s upstream oil sector and boost crude production, according to a Bloomberg report.

Bloomberg, citing sources familiar with the development, reported that the incentive, approved by President Bola Tinubu, grants Shell and its partners a tax rebate of $11.50 per barrel of crude produced, more than double the standard incentive previously available for similar projects.

The report said the production-linked tax credit is expected to be extended to other international oil companies undertaking new deepwater developments and will remain in effect until at least 2029.

The Bonga Southwest Aparo project, one of Nigeria’s largest planned offshore developments, is projected to attract about $20 billion in foreign direct investment and produce approximately 150,000 barrels of crude oil per day when completed, according to earlier projections by the Nigerian National Petroleum Company Limited (NNPC).

Bloomberg quoted a Shell spokesperson as saying that the company continued to advance the project towards development and would communicate any material updates through its official channels.

The latest incentive is part of a package of fiscal reforms introduced by the Tinubu administration since 2023 to revive Nigeria’s oil industry, which has struggled with declining investment, crude theft, pipeline vandalism and ageing infrastructure.

According to the report, a previous executive order had capped production tax credits at 20 per cent of a licence holder’s annual tax liability to offset operating costs, a threshold the federal government considered relatively high compared to international standards.

The report also highlighted signs of recovery in Nigeria’s oil sector, with crude production rising to an average of 1.56 million barrels per day in June, the highest monthly output since April 2020, according to figures released by the NUPRC.

Also, Shell Companies in Nigeria awarded contracts worth $518 million to indigenous companies last year in a big boost to the development of Nigerian content in oil and gas operations, the company has said.

Similarly, some 123 indigenous companies were engaged across the value chain of Shell businesses in Nigeria in the same period, according to Shell’s Vice President, Commercial, Rohan D’Souza, while commenting on the figures recently published in the company’s 2025 Payments to Governments Report.

“The payments show a strong support for Nigerian service providers in our operations,” D’Souza said, according to a statement signed by the Country Communications Manager, Gladys Afam-Anadu.

“We see the development of Nigeria companies beyond compliance with laws. It is an integral part of a longstanding strategy to create a win-win relationship with indigenous companies and support them to create more value in the oil and gas industry within and outside the country”, he added.

Over the years, Nigerian companies have provided technical and logistics services among many others with Shell businesses supporting them to improve their expertise and processes.

About a fortnight ago, Shell Nigeria Exploration and Production Company Ltd (SNEPCo) launched a $3-billion Contract Finance Facility with nine leading Nigerian banks to support indigenous contractors to execute contracts in its operations.

The fund, the company said, will be available in both Naira and dollars to be utilised by the contractors.

D’Souza pointed out: “When you consider the fact that Shell also paid some $2.016 billion through production entitlements, royalties, taxes, and statutory fees  to the Nigerian Government in 2025 alone, you get an idea of the enduring partnership we have forged in the country since we set foot here more than 60 years ago.”