News

October 14, 2025

Shell’s $2bn Gas FID: Lawyer urges Construction Act to lock in on-time delivery

British-Nigerian lawyer Abiola Aderibigbe has welcomed Shell’s $2 billion Final Investment Decision (FID) for Nigeria’s HI Field (OML 144), calling it a timely vote of confidence in the economy and an opportunity to hard-wire delivery discipline through a Nigerian Construction Act.

Shell’s decision, taken with partner Sunlink Energies, will develop a shallow-offshore non-associated gas project expected to supply about 350 million standard cubic feet per day from 2028, supporting Nigeria LNG’s expansion plans. The Presidency described it as another major upstream commitment within the past 18 months, adding to a pipeline of investments now exceeding $8 billion since President Bola Ahmed Tinubu assumed office.

Aderibigbe, widely regarded as an expert in international construction, energy, infrastructure & engineering, said the financing signal is strong, but the decisive factor will be how Nigeria builds.

“Shell’s FID is welcome news. The real test is delivery—safety, transparency, and schedule discipline across Nigeria’s construction ecosystem. That’s why I’m proposing a Nigerian Construction Act: to hard-wire contractor grading, enforceable HSE, prompt payment with fast adjudication, and skills development so we convert upstream commitments into on-time, on-budget infrastructure and quality jobs,” said Aderibigbe,

He commended President Tinubu for sustaining a reform posture that is re-opening the investment window, noting that the Administration’s support for gas and LNG projects is consistent with global demand trends and Nigeria’s industrial plans.

“This is the right kind of capital at the right time. The next step is to institutionalise the delivery system so investors and local contractors can execute safely, predictably, and at pace,” he said.

Aderibigbe’s proposed Nigerian Construction Act rests on five pillars which he adapted from global markets: Contractor Registration & Grading; Health, Safety & Environmental standards; Governance & Anti-Corruption; Prompt Payment & Fast-Track Adjudication; and Skills & Local Content. He argues that codifying these elements at a national level, adopted at state level, would reduce delays, variations, and disputes—turning high-profile FIDs into first-gas and practical-completion milestones on schedule.

Beyond oil and gas, he said, the same legislation would strengthen public works, housing, transport and industrial projects. “The delivery risks are similar: fragmented procurement, uneven contractor vetting, weak site safety culture, and payment instability. A single Act creates uniform expectations, credible enforcement, and a better cost of capital for Nigerian infrastructure,” he added.

Aderibigbe brings both practice and academic experience to the debate. He is Module Leader & Course Director on the LLM in International Construction Law at Liverpool John Moores University (delivered in partnership with Informa Connect, UK), and he regularly delivers executive programmes in construction contracts, risk, and dispute resolution across other institutions overseas.

On the HI Field specifically, Aderibigbe noted that the path from FID to commissioning typically depends on interface management (offshore platforms, pipelines, and onshore processing), contractor capability, and payment/adjudication certainty, to keep cashflow aligned with work progress. “A Construction Act aligns incentives across the supply chain so that fabrication yards, pipeline contractors, and M&E specialists have the confidence to invest in people and equipment—and to deliver,” he said.

He also framed the Act as complementary to local content: “Skills and standards go together. If we want Nigerians executing higher-value scopes, we must standardise competence frameworks and QA/QC expectations nationally. That is what investors look for when they decide where to place complex work.”

As Nigeria courts additional LNG and industrial investments, Aderibigbe’s message is clear: “$2bn FID is great—structured construction governance is greater.”

He urged policymakers, industry bodies and state governments to seize the moment: “Codify the rules now, and we turn today’s headline into tomorrow’s jobs, safer sites, and bankable delivery records.”