Tinubu approves deep offshore investment framework to unlock $50bn
By Taiwo Scholarstica and Firdaus Jibril
President Bola Ahmed Tinubu has approved a new investment framework aimed at attracting up to $50 billion in fresh investments into Nigeria’s deep offshore oil and gas sector.
The reform is expected to provide a more predictable environment for investors and revive major offshore projects that have remained delayed for years due to funding, commercial and regulatory challenges.
Under the new framework, the Federal Government will move away from project-by-project negotiations and adopt clear rules and eligibility requirements for qualifying deep offshore developments.
One of the major projects expected to benefit from the initiative is the proposed Bonga South West development, estimated at about $10 billion. The project is regarded as one of the significant offshore investments capable of boosting Nigeria’s oil production and generating wider economic benefits.
The Presidency said the decision followed President Tinubu’s engagement with Shell plc Chief Executive Officer, Wael Sawan, during which the President directed the development of additional measures to unlock the country’s deep offshore investment pipeline.
Rather than limiting the intervention to individual projects, the administration developed a broader framework that can apply to different categories of qualifying developments.
The reform has been given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. The order provides eligibility criteria and implementation procedures intended to give investors greater certainty while protecting Nigeria’s long-term interests.
The framework also allows NNPC Limited, acting as the government’s nominated counterparty under the Production Sharing Contracts, to make the necessary amendments to eligible contracts.
Speaking on the expected impact of the reform, the President’s Special Adviser on Oil and Gas, Olu Arowolo-Verheijen, said the policy would also strengthen Nigeria’s domestic industrial capacity.
“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible, strengthening domestic engineering, fabrication, marine logistics, technical services and project management,” she said.
According to her, the government’s objective goes beyond increasing oil production, as the projects are also expected to create employment, expand local supply chains and improve Nigeria’s capacity to execute complex offshore developments.
The framework was developed through an inter-agency process involving key government institutions, fiscal and regulatory bodies, legal and commercial experts, as well as operators and other stakeholders in the petroleum 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 and Nigerian Content Development and Monitoring Board for their contributions to the reform.
The President said the new policy was designed to address one of the major concerns affecting investment decisions globally, 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.
He added that the reform was part of his administration’s effort to create a stable investment environment capable of attracting capital, supporting Nigerian businesses and ensuring that the country’s natural resources generate lasting economic value.