By Ahmed Yusuf | National News
President Bola Ahmed Tinubu has approved a new investment framework aimed at unlocking up to $50 billion in fresh deep offshore oil and gas investments and reviving major projects that have remained stalled for years.
The landmark reform replaces the previous approach of negotiating incentives on a project-by-project basis with a transparent, rules-based framework designed to provide greater certainty for investors and strengthen Nigeria’s competitiveness for global capital.
According to a statement issued on Tuesday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the framework will support the next generation of deep offshore developments, beginning with the approximately $10 billion Bonga South West project.
The initiative followed President Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which the President directed the development of measures to unlock Nigeria’s deep offshore investment pipeline.
Rather than providing individual solutions for specific projects, the Federal Government subsequently developed a broader framework applicable to multiple categories of qualifying deep offshore developments.
The reform has been given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which establishes clear eligibility requirements, implementation procedures and a more predictable investment structure.
The new framework is expected to reduce uncertainty for investors while ensuring that Nigeria derives sustainable economic value from its offshore petroleum resources.
It also authorises the Nigerian National Petroleum Company Limited (NNPCL), as the government’s designated counterparty under Production Sharing Contracts, to undertake necessary amendments to eligible contracts to facilitate implementation of the new incentives.
President Tinubu commended the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum Resources, Nigeria Revenue Service, NNPCL, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Content Development and Monitoring Board, international investors and other industry stakeholders for their contributions to the development of the framework.
The President said countries that attract long-term investment are not necessarily those with the largest natural resources, but those that provide investors with certainty.
“This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships,” Tinubu said.
He added that the government was working to create conditions that would encourage capital inflows, support the growth of Nigerian businesses and ensure that the country’s natural resources generate lasting value for citizens.
The Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said the framework would also place strong emphasis on expanding Nigeria’s industrial capacity.
She explained that qualifying projects would be expected to maximise execution within Nigeria wherever commercially and technically feasible.
According to her, this would strengthen domestic engineering, fabrication, marine logistics, technical services and project management.
She said the objective extends beyond increasing oil and gas production, stressing that the reform is also designed to create skilled employment, deepen local supply chains and position Nigeria as a regional hub for deep offshore project execution.
The Federal Government expects the framework to provide a more predictable investment environment, accelerate the development of major offshore projects and stimulate broader economic activity across Nigeria’s oil and gas value chain.
