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President Bola Tinubu has approved a new investment framework for Nigeria’s deep offshore oil and gas sector, with the Federal Government targeting up to $50 billion in fresh investment and the revival of major projects that have remained stalled for years.
The new framework, which replaces project-by-project negotiations with a transparent and rules-based investment regime, is expected to provide greater certainty to investors and improve Nigeria’s competitiveness in attracting globally mobile capital.
A major project expected to benefit from the new policy is the approximately $10 billion Bonga South West development, which has remained stalled despite its potential to significantly boost Nigeria’s offshore oil production and investment.
The reform takes effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which provides eligibility criteria and implementation procedures for qualifying developments.
According to a statement issued on Tuesday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the framework was developed following Tinubu’s engagement with the Chief Executive Officer of Shell plc, Wael Sawan.
During the engagement, the President directed the development of measures to unlock the next wave of investments in Nigeria’s deep offshore oil and gas sector.
The Presidency said rather than restricting the response to individual projects, the administration developed a comprehensive framework that would apply across multiple categories of qualifying offshore developments.
The new arrangement also gives NNPC Limited, as the Federal Government’s nominated counterparty under the Production Sharing Contracts, the authority to proceed with necessary amendments to eligible contracts to give effect to the incentives.
Tinubu said the reform was aimed at creating the certainty required to attract long-term investment into Nigeria’s oil and gas industry while ensuring that the country derives lasting 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 said the framework demonstrated his administration’s commitment to building an investment environment based on clear rules, strong institutions and enduring partnerships.
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“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,” Tinubu said.
The policy also places emphasis on increasing the participation of Nigerian companies in the execution of deep offshore projects.
The Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said qualifying projects would be expected to maximise execution within Nigeria wherever commercially and technically feasible.
She said the requirement would strengthen domestic capacity in engineering, fabrication, marine logistics, technical services and project management.
“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,” she said.
According to her, the government’s objective was not only to increase investment and production but also to create skilled jobs, deepen local supply chains and position Nigeria as a regional hub for deep offshore project execution.
The framework is therefore expected to support the government’s broader local-content and industrialisation objectives by creating opportunities for Nigerian businesses involved in engineering, procurement, fabrication, logistics and other oilfield services.
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 for their contributions to the development of the framework.
He also acknowledged the contributions of investing partners and other industry stakeholders involved in shaping the new investment regime.
The Presidency said the framework was designed to strengthen Nigeria’s position in the international competition for investment capital by providing investors with greater fiscal certainty and clearer regulatory processes.
