The Nigerian National Petroleum Company Limited (NNPC Ltd.) has welcomed the Federal Government’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, describing the measure as a major reform capable of unlocking fresh investment and accelerating Nigeria’s crude oil production growth.
NNPC said the new fiscal framework would significantly improve Nigeria’s competitiveness in attracting deep offshore investments and strengthen the country’s drive to achieve its 3 million barrels per day (MMbopd) production ambition by 2030.
The Order establishes a transparent, predictable and globally competitive fiscal regime for qualifying greenfield deep offshore developments, providing greater certainty for investors, accelerating Final Investment Decisions (FIDs) and enabling the country to maximise value from its offshore petroleum resources.
According to NNPC, the framework is expected to unlock more than $50 billion in new investments, including major developments such as the Bonga South-West, Zabazaba and Owowo Deep Offshore projects.
Bonga South-West, which received approval in March 2026, is expected to become the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008.
Group Chief Executive Officer of NNPC Ltd., Bashir Bayo Ojulari, described the new Order as one of the most significant policy interventions in Nigeria’s upstream petroleum sector in recent years.
He said the reform would send a strong signal to international investors that Nigeria was committed to providing a stable, competitive and investment-friendly environment for deep offshore developments.
“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development,” Ojulari said.
“Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought,” he added.
The NNPC chief said the Order was also aligned with the company’s strategy of protecting existing production, accelerating near-term output growth and attracting fresh capital into high-value assets.
“For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets,” he said.
Ojulari expressed confidence that the incentive regime would strengthen the company’s efforts to achieve the 3 MMbopd production target while generating greater value for NNPC shareholders and the Nigerian economy.
He disclosed that recent reforms across the petroleum sector had already stimulated more than $34 billion in new investment commitments, adding that the Deep Offshore Incentives Order would build on the momentum by facilitating timely FIDs on strategic offshore projects.
Ojulari commended President Bola Ahmed Tinubu for what he described as sustained leadership and commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector.
He said the Presidential Executive Orders and other reforms introduced by the administration had contributed to strengthening the country’s oil and gas investment framework.
NNPC said the latest fiscal intervention reinforced its commitment to sustainable production growth, responsible investment, energy security and long-term value creation for the Nigerian Federation.
