Nigeria has approved a new investment framework for deep offshore oil and gas projects aimed at unlocking up to US$50 billion in investment and reviving major developments that have remained stalled for years.
President Bola Ahmed Tinubu signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, establishing clearer and more predictable terms for investors in the country’s deep offshore sector.
The framework is expected to support the approximately US$10 billion Bonga South West project as an initial major development, while creating a broader pathway for other capital-intensive offshore projects.
According to the Nigerian government, the reform replaces project-by-project negotiations with a transparent, rules-based system featuring defined eligibility criteria and implementation processes.
For existing deep offshore leases, projects will have until December 31, 2029, to reach Final Investment Decision and qualify for the full standard incentive provided under the Order.
President Tinubu said the policy was intended to provide investors with the certainty required to commit capital over the long term, stressing that countries competing for global investment must offer more than 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. This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships.” he said.
The government said the framework followed the President’s engagement with Shell Plc Chief Executive Officer Wael Sawan, during which Tinubu directed his administration to develop measures capable of unlocking a wider pipeline of deep offshore investments rather than addressing individual projects separately.
The reform also permits the Nigerian National Petroleum Company (NNPC) Limited, as the government’s nominated counterparty under Production Sharing Contracts, to undertake the necessary amendments to eligible contracts to implement the framework.
Aside from attracting foreign capital, the government said the policy is designed to strengthen domestic participation in offshore project development.
Projects benefiting from the supplementary incentives are expected to maximise execution within Nigeria where commercially and technically feasible, with emphasis on engineering, fabrication, marine logistics, technical services, and project management.
Olu Arowolo-Verheijen, the President’s Special Adviser on Oil and Gas, said the objective was to strengthen “domestic engineering, fabrication, marine logistics, technical services and project management,” while creating skilled jobs and deepening local supply chains.
The government also expects the policy to support Nigeria’s ambition of becoming Africa’s regional hub for deep offshore project execution by expanding the country’s industrial and technical capacity.
President Tinubu described the reform as the tenth major policy directive of his administration, specifically targeting the oil and gas sector, saying the measures were intended to address constraints affecting investment, production, and value creation.
He added that the country’s natural resources must “work harder for our people”, positioning the new incentives as part of a broader effort to attract long-term investment while retaining more of the economic value generated by Nigeria’s oil and gas resources domestically.
