Menu

President Bola Ahmed Tinubu has approved a major reform that replaces Nigeria’s long-standing project-by-project negotiation model with a transparent, rules-based framework designed to unlock up to $50 billion in deep offshore oil and gas investment. The move, announced on Tuesday in a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, aims to restart large capital-intensive offshore developments that have been stalled for decades and strengthen Nigeria’s competitiveness for global investment capital.

The new framework, issued through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, establishes clear eligibility criteria, defined implementation processes, and national value. It is expected to support the next generation of offshore projects, beginning with the roughly $10 billion Bonga South West development.

The decision follows Tinubu’s engagement with Shell CEO Wael Sawan, during which the president directed officials to design measures to unlock Nigeria’s deep-offshore investment pipeline. Rather than pursuing individual project solutions, the government converted that directive into a comprehensive framework applicable across multiple categories of qualifying developments.

Under the approval, NNPC Limited can now proceed with amendments to eligible Production Sharing Contracts to implement the new incentives.

Presidential adviser on oil and gas Olu Arowolo Verheijen said a defining feature of the reform is its emphasis on Nigerian industrial capability. She noted that qualifying projects will maximise execution within Nigeria wherever commercially and technically feasible, strengthening domestic engineering, fabrication, marine logistics, technical services and project management. The goal, she said, 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.

The presidency said the framework was developed through an extensive inter-agency process involving fiscal, legal, commercial, and regulatory institutions, as well as industry operators. Tinubu commended the Federal Ministry of Justice, the Ministry of Finance, the Ministry of Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, and investing partners for their collaboration.

In the statement, Tinubu said countries that attract long-term investment are those that provide the greatest certainty. “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.”