President Bola Ahmed Tinubu has approved a new investment framework aimed at unlocking up to $50 billion in deep offshore investments and reviving major capital-intensive oil and gas projects that have remained stalled for years.
The reform replaces project-by-project negotiations with a transparent, rules-based framework designed to provide greater certainty for investors and strengthen Nigeria’s competitiveness in attracting global capital.
The initiative will support the next generation of deep offshore developments, beginning with the approximately $10 billion Bonga South West project, while creating an investment architecture applicable to other qualifying projects.
According to the Presidency, 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 Federal Government subsequently developed a comprehensive framework applicable across multiple categories of eligible deep offshore developments.
The new policy has been given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
The framework establishes clear eligibility criteria and implementation procedures while providing a more predictable investment environment for international oil companies and other investors.
The approval also authorises NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts (PSCs), to undertake necessary amendments to eligible contracts to implement the new framework.
Special Adviser to the President on Oil and Gas, Olu 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 local engineering, fabrication, marine logistics, technical services and project management companies.
“The objective 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,” Verheijen said.
The framework was developed following an extensive inter-agency process involving the Presidency, fiscal, legal, commercial and regulatory institutions, as well as operators and other stakeholders in the oil and gas industry.
President 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 (NUPRC), Nigerian Content Development and Monitoring Board (NCDMB), investing partners and other industry stakeholders for their contributions to the initiative.
Tinubu said the ability to attract long-term investment depended largely on the certainty and predictability of a country’s investment environment.
“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 added that the reform demonstrated his administration’s commitment to creating an investment environment based on clear rules, strong institutions and sustainable 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,” Tinubu said.
The Federal Government said the framework is expected to help revive major offshore developments, increase oil and gas production, strengthen local content and generate broader economic opportunities from Nigeria’s deep offshore resources.
