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By Adewale Sanyaolu and Juliana Taiwo Obanlonye, Abuja
President Bola Tinubu has approved a new investment framework designed to unlock up to $50 billion in deep offshore oil and gas investments and revive large-scale projects that have remained stalled for years.
The reform, which replaces project-by-project negotiations with a transparent, rules-based framework, is expected to support the development of a new generation of deep offshore projects, beginning with the estimated $10 billion Bonga South West project.
The framework is contained in the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which provides eligibility criteria and implementation procedures intended to give investors greater certainty while protecting Nigeria’s long-term economic interests.
The approval also authorises NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts, to undertake necessary amendments to eligible contracts to implement the framework.
The reform followed Tinubu’s engagement with Shell Chief Executive Officer, Wael Sawan, during which the President directed the government to develop measures capable of unlocking the next wave of deep offshore investments.
Rather than approving incentives for individual projects, the government developed a broader framework applicable to multiple categories of qualifying developments.
A major component of the framework is increased domestic participation in project execution.
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Qualifying projects are expected to maximise work carried out in Nigeria where commercially and technically feasible, with the government targeting increased opportunities for Nigerian engineering, fabrication, marine logistics, technical services and project management companies.
The government said the framework is intended not only to increase investment and oil production but also to create skilled employment, deepen local supply chains and strengthen Nigeria’s position as a regional hub for deep offshore project execution.
The framework was developed through an inter-agency process led by the Presidency and involving fiscal, legal, commercial and regulatory institutions, as well as industry stakeholders.
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 and investing partners for their contributions.
The President said the reform was designed to make investment certainty a defining feature of Nigeria’s oil and gas sector.
“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,” Tinubu said.
He added that the framework would create conditions for increased capital inflows, growth of Nigerian businesses and greater national value from the country’s natural resources.
