Nigeria’s oil reforms will unlock $50bn deep offshore investments – Tinubu
Recent reforms in Nigeria’s oil and gas sector are designed to unlock up to $50 billion in new deep offshore investments, President Tinubu has declared.
The President made this known on Tuesday in Abuja at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), established under the Petroleum Industry Act (PIA) 2021.
The President who was represented by Vice-President Kashim Shettima stated 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.
He noted that the measure was particularly important because some of Nigeria’s largest oil prospects are located in the deep offshore but have remained undeveloped for years.
According to him, the incentive is expected to unlock as much as $50 billion in new investment, beginning with the Bonga South-West project.
Tinubu said the development reinforces the Federal Government’s message that Nigeria is open to long-term investment and committed to providing clear and predictable terms.
He added that the PIA has provided a strong foundation for investment by establishing clear rules, a predictable regulatory framework, and mechanisms for greater participation of host communities.
The President also highlighted progress made in restoring security in oil-producing areas, attracting investors, and improving upstream investment opportunities through open and competitive processes.
He mentioned that investors who previously looked elsewhere are returning to Nigeria, which has become Africa’s leading destination for upstream investment for two consecutive years.
Tinubu also highlighted the Host Communities Development Trusts, noting that more than 170 host-community trusts have been funded to support projects in education, healthcare, and other areas.
He said the development of host communities is particularly significant because sustainable peace in oil-producing areas depends on fairness, inclusion, and shared benefits.
The President stated that the administration is determined to use petroleum resources to support a broader economy driven by agriculture, manufacturing, and digital and creative industries.
He added that the oil and gas sector will continue to provide gas for power, industries, and factories while creating opportunities for Nigerian engineers, fabricators, and indigenous service companies.
He stressed that policy reforms will only deliver results when effectively implemented, placing a major responsibility on the NUPRC to ensure predictable, transparent, and reliable regulatory processes.
Tinubu charged the commission to work closely with sister agencies to ensure investors are not subjected to conflicting requirements or unnecessary delays.
He also urged operators to comply with their work programs, local-content obligations, environmental standards, and commitments to host communities in return for government incentives.
The President affirmed that the government will uphold the rule of law, the sanctity of contracts, and accountability as key pillars for sustaining investor confidence in the sector.
He stated that the administration will also pursue an energy transition strategy suited to Nigeria’s needs, featuring greater gas supply for power, industry, and clean cooking, alongside the expansion of renewable energy.
Tinubu also congratulated the NUPRC on its fifth anniversary, urging its management and staff to sustain the commitment, integrity, and sense of purpose required to consolidate gains in the upstream sector.