President Bola 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 $50bn in new investment and revive major offshore developments that have remained stalled for years.
The framework is expected to provide clearer and more predictable investment rules for capital-intensive deep offshore projects, beginning with the proposed $10bn Bonga South West development.
The reform, which is being implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, replaces the previous project-by-project approach to investment negotiations with a broader framework based on defined eligibility criteria and implementation procedures.
The Presidency said the new arrangement was designed to provide greater certainty for investors while protecting Nigeria’s long-term economic interests.
The approval also authorises NNPC Limited, as the Federal Government’s nominated counterparty under the relevant Production Sharing Contracts, to proceed with amendments to eligible contracts required to implement the new investment framework.
The reform followed President Tinubu’s engagement with the Chief Executive Officer of Shell Plc, Wael Sawan, during which the President directed the development of measures to unlock the next phase of Nigeria’s deep offshore investment pipeline.
Rather than developing a separate solution for each project, the Presidency said the directive resulted in the creation of a comprehensive investment framework applicable to multiple categories of qualifying deep offshore developments.
The government said the framework was developed through an extensive inter-agency process involving fiscal, legal, commercial and regulatory institutions, as well as industry operators and other stakeholders.
The development is expected to improve Nigeria’s competitiveness in attracting globally mobile capital for large-scale offshore oil and gas projects.
The Presidency said a major component of the new framework would be the expansion of Nigerian participation in the execution of deep offshore projects.
The President’s Special Adviser on Oil and Gas, Olu Arowolo-Verheijen, said qualifying projects would be required to maximise execution within Nigeria where commercially and technically feasible.
She said this would create opportunities for Nigerian companies involved in engineering, fabrication, marine logistics, technical services and project management.
“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,” Arowolo-Verheijen said.
“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.”
The approach is expected to increase the participation of Nigerian businesses in major offshore developments while creating opportunities for technology transfer and development of specialised skills.
President Tinubu said the ability to attract long-term capital depended not only on the availability of natural resources but also on the certainty provided by the investment environment.
“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 said the reform was intended to create an investment environment based on clear rules, strong institutions and long-term partnerships.
“This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships,” the President added.
According to him, the framework would create conditions for increased capital inflows, expansion of Nigerian businesses and greater economic benefits from the country’s natural resources.
“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 said.
The approximately $10bn Bonga South West project is expected to be among the first major developments to benefit from the new investment framework.
The project is part of Nigeria’s long-standing deep offshore development pipeline and has been subject to delays amid investment, commercial and regulatory considerations.
The new framework is intended to establish a more predictable fiscal and regulatory environment capable of supporting such large-scale developments.
The Presidency said the broader objective was to revive capital-intensive offshore projects that had remained stalled while creating an investment architecture capable of supporting future developments.
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 roles in developing the framework.
He also acknowledged the contributions of investing partners and other industry stakeholders involved in the process.
The Presidency said the framework represented a shift from negotiating individual investment incentives towards establishing a transparent and durable structure for qualifying deep offshore projects.
The government expects the reform to strengthen Nigeria’s position in the competition for international oil and gas investment, increase offshore production and generate wider economic opportunities through local participation and supply-chain development.
The approval comes as the Federal Government seeks to attract fresh investment into Nigeria’s oil and gas industry, increase production and use the sector to support economic growth while improving the country’s attractiveness to international investors.
