President Bola Ahmed Tinubu has approved a new investment framework aimed at unlocking up to $50 billion in deep offshore oil and gas investments and reviving major projects that have remained stalled for years.
The reform, implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, replaces project-by-project negotiations with transparent eligibility criteria, defined implementation processes and a rules-based investment architecture.
The framework is expected to strengthen Nigeria’s competitiveness in attracting globally mobile capital and support the development of the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project.
According to a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the initiative followed President Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which the President directed the development of measures to unlock Nigeria’s deep offshore investment pipeline.
Rather than providing individual solutions for specific projects, the Federal Government subsequently developed a comprehensive framework applicable to multiple categories of qualifying deep offshore developments.
The approval also authorises NNPC Limited, as the government’s nominated counterparty under Production Sharing Contracts (PSCs), to undertake necessary amendments to eligible contracts to give effect to the new incentives.
The government said the framework is designed not only to increase investment and oil production but also to deepen Nigerian participation in offshore project execution.
Olu Arowolo-Verheijen, Special Adviser to the President on Oil and Gas, said qualifying projects would be required to maximise execution within Nigeria wherever commercially and technically feasible.
She said the policy would strengthen domestic engineering, fabrication, marine logistics, technical services and project management while creating skilled employment opportunities and expanding local supply chains.
“The objective is not only to increase investment and production, but also to create skilled jobs, deepen local supply chains and position Nigeria as Africa’s regional hub for deep offshore project execution,” Arowolo-Verheijen said.
President Tinubu commended the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum Resources, Nigeria Revenue Service, NNPC Limited, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Content Development and Monitoring Board, investing partners and other industry stakeholders for their contributions to the development of the framework.
Tinubu said the reform demonstrated his administration’s determination to provide certainty for long-term investors while ensuring that Nigeria derives sustainable value from its natural resources.
“The countries that attract long-term investment are not necessarily those with the greatest natural resources. They are the ones that provide the greatest certainty,” the President said.
He added that the framework would create conditions for increased capital inflows, growth of Nigerian businesses, job creation and stronger national economic returns from the country’s offshore resources.
The government expects the reform to provide a more predictable operating environment for deep offshore investors while accelerating the development of projects capable of generating significant investment, production and local economic benefits.
