President Bola Ahmed Tinubu has approved a new investment framework designed to unlock up to $50 billion in deep offshore oil and gas investments and revive major offshore projects that have remained stalled for years.
The reform, according to the Presidency, replaces project-by-project negotiations with a transparent, rules-based framework intended to provide greater certainty to investors while safeguarding Nigeria’s long-term economic interests.
The framework, which takes effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, is expected to support the development of the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project.
The Presidency said the reform 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 limiting the intervention to individual projects, the government said it developed a comprehensive framework applicable to multiple categories of qualifying deep offshore developments.
The new framework establishes clear eligibility requirements and implementation procedures, while providing an investment architecture designed to improve Nigeria’s competitiveness in attracting globally mobile capital.
The approval also authorises NNPC Limited, as the government’s nominated counterparty under Production Sharing Contracts, to proceed with amendments to eligible contracts required to implement the new framework.
President Tinubu’s Special Adviser on Oil and Gas, Olu Arowolo-Verheijen, said a key component of the reform was the promotion of Nigerian industrial capacity.
She said qualifying projects would be required to maximise execution within Nigeria where commercially and technically feasible, thereby expanding opportunities for domestic engineering, fabrication, marine logistics, technical services and project management companies.
According to her, the objective is not only to increase investment and oil production but also to create skilled employment, strengthen local supply chains and establish Nigeria as a 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, the Presidency and operators in the oil and gas industry.
Institutions that contributed to the process included the Federal Ministries of Justice, Finance and Petroleum Resources; the Nigeria Revenue Service; NNPC Limited; the Nigerian Upstream Petroleum Regulatory Commission; and the Nigerian Content Development and Monitoring Board.
President Tinubu commended the government agencies, investing partners and other industry stakeholders involved in developing the framework.
He said countries that attract long-term investments are not necessarily those with the largest natural resources but those that provide investors with certainty.
“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.
The President said the reform was part of his administration’s effort to create an investment environment based on clear rules, strong institutions and sustainable partnerships.
He said the ultimate objective was to facilitate the flow of capital, expand opportunities for Nigerian businesses, create prosperity and ensure that the country’s natural resources deliver lasting national value.
