President Bola Ahmed Tinubu has approved a new investment framework for Nigeria’s deep offshore oil and gas sector aimed at unlocking up to $50 billion in fresh investment and reviving major offshore developments that have remained stalled for years.
The reform, given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, replaces the previous project-by-project approach to investment incentives with a transparent, rules-based framework designed to provide greater certainty for investors and strengthen Nigeria’s competitiveness for global capital.
The framework is expected to support the next generation of large-scale deep offshore developments, beginning with the approximately $10 billion Bonga South West project. The Bonga South West project has been delayed for years amid investment and commercial challenges.
The Federal Government said the reform followed President Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which the President directed officials to develop measures capable of unlocking the country’s deep offshore investment pipeline.
Rather than creating a special arrangement for individual projects, the government said it transformed the directive into a broader investment architecture applicable to multiple categories of qualifying deep offshore developments.
A key component of the framework is the establishment of clear eligibility criteria and implementation procedures, providing investors with greater certainty while seeking to protect Nigeria’s long-term economic interests.
The approval also authorises NNPC Limited, as the government’s nominated counterparty under the relevant Production Sharing Contracts, to undertake necessary amendments to eligible contracts to implement the new framework.
President Tinubu said the reform was designed to address one of the major factors influencing long-term investment decisions: certainty.
“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.”
He added: “This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships. We are creating the conditions for capital to flow, for Nigerian businesses to grow, for our people to prosper and for our natural resources to deliver lasting national value.”
The initiative also places emphasis on increasing Nigerian participation in the execution of deep offshore projects. According to the President’s Special Adviser on Oil and Gas, Olu Arowolo-Verheijen, qualifying projects will be expected to maximise execution within Nigeria where commercially and technically feasible.
“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible, strengthening domestic engineering, fabrication, marine logistics, technical services and project management,” Arowolo-Verheijen said.
She added that the objective extends beyond increasing investment and oil production to creating skilled employment, deepening local supply chains and positioning Nigeria as a regional hub for deep offshore project execution.
The Federal Government said the framework was developed through an extensive inter-agency process involving the Presidency, fiscal and legal institutions, commercial and regulatory agencies, NNPC Limited, industry operators and other stakeholders.
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 and Nigerian Content Development and Monitoring Board, as well as industry partners, for their contributions to the reform.
The new framework comes as Nigeria seeks to attract large-scale capital into its upstream sector while increasing crude oil production and maximising the economic benefits of its petroleum resources.
By moving away from individually negotiated incentives towards a more predictable framework, the administration is seeking to give international investors clearer rules for evaluating major offshore projects while ensuring that increased investment translates into domestic economic activity.
