…says oil reforms are unlocking $50bn deep offshore investments
Vice President Kashim Shettima has announced that international investors who previously exited Nigeria in search of better business climates are now making a strong return, drawn back by a steadier, more secure oil production landscape and targeted economic reforms.
Representing President Bola Ahmed Tinubu on Tuesday in Abuja at the fifth-anniversary celebration of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Shettima noted that enhanced collaboration among security agencies, industry operators, host communities, and the regulator has stabilized crude production.
This turnaround has ranked Nigeria first among Africa’s leading destinations for upstream investment for two consecutive years.
Announcing a massive drop in oil revenue dependence, President Tinubu said, “These gains matter well beyond the oil and gas industry. Under the Renewed Hope Agenda, we are building a diversified economy in which agriculture, manufacturing, the digital and creative industries all play their part.”
“We have already reduced our dependence on oil revenue, and we intend to go further. But a diversified economy still needs energy, foreign exchange and investment, and that is where this sector serves the nation. Our gas can power homes and factories. Petroleum earnings support a stable naira and help fund the Federation.”
He stated that a well-run upstream industry is capable of creating jobs for Nigerian engineers, fabricators, and service companies, as his administration plans to use petroleum resources to build the wider economy, rather than depend on them.
The Nigerian leader promised to pursue an energy transition that is just and suited to Nigeria’s needs,” declaring that this is the decade of Gas.
“With the largest gas reserves in Africa, we will expand gas supply for power, industry and clean cooking, reduce flaring and methane emissions, and grow renewable energy alongside it. Nigeria will meet its climate responsibilities without sacrificing the development and energy access our people deserve,” he added.
The President also vowed that his administration will not rest on its oars until Nigeria becomes the destination of choice for hydrocarbon investment, maintaining that in the next phase, the government will insist on compliance and accountability.
“Operators who enjoy incentives must deliver on their commitments to work programmes, local content, the environment and host communities, and the Commission must also account publicly for its own performance. We will uphold the rule of law and the sanctity of contracts, so that disputes are fewer and, where they arise, are resolved quickly and fairly,” he stated.
Identifying the Petroleum Industry Act (PIA) as a strong foundation for the achievements recorded in the sector, President Tinubu observed, however, that a foundation is only the beginning, as laws only set the rules, while investors decide on commercial terms.
He described his administration as “a listening government,” just as he said, “Investors told us plainly that good rules were not enough while costs remained high, contracting took too long and fiscal terms for complex projects were uncertain. We listened, and we acted.”
Noting that policy, no matter how sound, will achieve little rules it is implemented, the President noted that “the responsibility rests in large part with,” NUPRC, referring to the Commission as “the bridge between government policy and investment on the ground”.
He charged the Commission “to keep its processes clear and its timelines reliable, to work closely with sister agencies so that investors are not caught between overlapping requirements, and to remain firm, fair and independent in its decisions.”
“Acknowledging that five years was a short time in the life of any institution, President Tinubu applauded the NUPRC for using the period well, urging the Commission to “approach the next five years with the same commitment, integrity, and sense of purpose.”
He further noted that the Deep Offshore Oil and Gas Projects Incentive Tax Order 2026 has replaced uncertainty with clear and published investment criteria.
“The order replaces that uncertainty with clear, published criteria and requires projects to be executed in Nigeria wherever applicable.”
“It is designed to unlock up to $50 billion in new investment, beginning with the Bonga South-West project.”
“The message to the world is simple: Nigeria is open for long-term investment, and the terms are clear,” Tinubu said.
On his part, Minister of State for Petroleum Resources, Oil, Senator Heineken Lokpobiri, said NUPRC has recorded significant achievements in the last five years, attributing the progress to the leadership and reform agenda of the Tinubu administration.
According to him, Nigeria, with crude oil production of about 1.7 million barrels per day and over 37 billion barrels of oil reserves, still requires increased investment, additional licensing rounds, and intensified exploration to unlock the full potential of the nation’s petroleum resources.
The Minister urged the Commission to build on its successes by adopting decisive regulatory measures and eliminating bureaucratic bottlenecks that might discourage investment.
Also speaking, the Chairman of the NUPRC Governing Board, Senator Magnus Abe, said the creation of the Commission under the PIA was evidence that Nigeria was making progress in reforming the oil and gas sector.
He credited the Commission’s success to President Tinubu’s dogged leadership and his decision to shield the regulator from political interference.
Abe commended the management and staff of NUPRC for what he called their exceptional commitment to transparency, professionalism and operational efficiency over the last five years.
Also speaking, Chairman of the Senate Committee on Gas, Senator Jarigbe Agom Jarigbe, said the reforms introduced through the PIA has improved transparency, regulatory certainty and investment inflows into Nigeria’s oil and gas sector.
He expressed the National Assembly’s satisfaction with the performance of the NUPRC as the upstream regulator, particularly its contribution to improving operational efficiency and creating greater certainty for investors.
Representing the Minister of State for Petroleum Resources, Gas, Ekperikpe Ekpo, the Permanent Secretary in the Ministry, Mrs. Patience Oyekunle, said the establishment of the NUPRC under the PIA represents a significant transformation of Nigeria’s petroleum industry.
She explained that the clear separation of policy, commercial and regulatory responsibilities under the new framework had strengthened regulatory stability, with expectations of increased production and greater value for investments in the sector.
The Minister reiterated the Federal Government’s determination to maximise Nigeria’s vast gas resources and urged regulators to sustain efforts aimed at building trust and strengthening investor confidence through regulatory excellence.
The anniversary event also featured the presentation of awards to former Directors of the Department of Petroleum Resources (DPR), which was transformed into the NUPRC, in recognition of their contributions to reforms in the upstream petroleum sector.
The event brought together stakeholders across the petroleum industry, government institutions and the National Assembly, providing an opportunity to assess five years of the NUPRC’s regulatory journey and chart a new course for increased investment, production and value creation in Nigeria’s upstream oil and gas sector.