President Bola Tinubu has approved a landmark reform designed to unlock up to $50 billion in deep offshore investment and revive stalled projects in Nigeria’s oil and gas sector.
The reform replaces project-by-project negotiations with a transparent, rules-based investment framework aimed at attracting long-term capital and enhancing Nigeria’s competitiveness for globally mobile investment. Bayo Onanuga, the President’s spokesperson, announced the development in a statement on Tuesday in Abuja.
According to the presidency, the framework will support a new generation of deep offshore developments, beginning with the approximately $10 billion Bonga South West project. The decision follows Mr Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which measures to unlock the deep offshore pipeline were discussed.
Rather than adopting project-specific solutions, the Federal Government developed a comprehensive framework applicable to multiple qualifying developments. Established through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, the framework introduces transparent eligibility criteria and clear implementation processes, offering greater investor certainty while safeguarding long-term national value.
The approval empowers NNPC Limited, as the government’s nominated counterparty under production sharing contracts, to proceed with necessary amendments for implementation.
President Tinubu commended the Federal Ministries of Justice, Finance, and Petroleum Resources, alongside the Nigeria Revenue Service, NNPC Limited, and other stakeholders for their contributions. He also praised the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, and investing partners for helping to shape the framework.
“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 stated. “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.”
Olu Verheijen, Special Adviser to the President on Energy, emphasised that the reform prioritises strengthening Nigerian industrial capacity. She noted that qualifying projects will maximise in-country execution wherever commercially and technically feasible.
“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,” she added.
