President Bola Ahmed Tinubu has approved a new investment framework for Nigeria’s deep offshore oil and gas sector, with the Federal Government projecting that the reform could unlock up to $50 billion in new investment.
The reform is designed to replace project-by-project negotiations with a transparent and rules-based system aimed at attracting long-term investment and reviving major offshore developments that have remained stalled for years.
One of the first major projects expected to benefit is the approximately $10 billion Bonga South West project, while the broader framework is intended to support several other qualifying deep offshore developments.
New Framework Replaces Project-by-Project Negotiations
According to a statement issued by Tinubu’s media aide, Bayo Onanuga, the reform followed the President’s engagement with Shell plc Chief Executive Officer Wael Sawan, during which Tinubu directed officials to develop measures capable of unlocking the country’s deep offshore investment pipeline.
Rather than negotiating incentives separately for individual projects, the Federal Government developed a broader framework with clear eligibility requirements and implementation procedures.
The framework is being implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
The government said the new approach is expected to provide investors with greater certainty while protecting Nigeria’s long-term economic interests.
It also allows NNPC Limited, as the government’s nominated counterparty under Production Sharing Contracts, to make the necessary amendments to eligible contracts required to implement the new framework.
Government Targets More Nigerian Participation
Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said the framework places strong emphasis on strengthening Nigeria’s industrial capacity.
According to her, projects that qualify under the new incentives will be expected to maximise execution within Nigeria whenever commercially and technically possible.
This could increase opportunities for Nigerian companies involved in engineering, fabrication, marine logistics, technical services and project management.
“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,” Arowolo-Verheijen said.
The reform is therefore expected to go beyond attracting foreign capital by creating opportunities for local businesses and skilled workers.
Tinubu: Investment Follows Certainty
Tinubu commended the government agencies, industry partners and other stakeholders involved in developing the framework.
He said countries that attract long-term investment are not necessarily those with the largest natural resources, but those capable of providing investors with certainty.
“They are the ones that provide the greatest certainty,” the President said.
Tinubu said the reform reflects his administration’s effort to create a more predictable investment environment built around clear rules, strong institutions and long-term 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,” he added.
