Joseph Bakare
President Bola Tinubu has approved a new regulatory and fiscal framework for offshore oil and gas projects a move the government says could attract up to $50 billion in investment and revive long-delayed developments.
Nigeria has struggled in recent years to attract new upstream oil investment amid regulatory uncertainty, high project costs and competition from other oil-producing jurisdictions.
Presidential spokesperson Bayo Onanuga said the Deep Offshore Oil and Gas Projects Incentives replaces project-specific negotiations with a rules-based system under a new tax remission order designed to provide investor certainty and strengthen Nigeria’s competitiveness for global capital.
The government said the framework would support a new wave of offshore projects, starting with Shell’s long-delayed $10 billion Bonga South West project, which is expected to reach a final investment decision in 2027.
The approval also enables state oil firm NNPC Ltd to amend eligible production-sharing contracts with producers while requiring qualifying projects to prioritise local execution where feasible, boosting jobs and supply chains.
A defining feature of the reform is its emphasis on Nigerian industrial capability, said Olu Arowolo-Verheijen, the President’s special adviser on oil and gas. “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. 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.”
Tinubu commended the efforts that went into shaping the framework. “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. This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring 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.”
The reform replaces project-by-project negotiations with a transparent investment framework designed to unlock up to US$50 billion in deep offshore investment and restart Nigeria’s large, capital-intensive offshore developments that have remained stalled for decades.
The reform establishes a transparent, rules-based investment framework capable of supporting the next generation of deep offshore developments, beginning with the approximately US$10 billion Bonga South West project, while strengthening Nigeria’s competitiveness for globally mobile investment capital.
The decision builds on President Tinubu’s engagement with the Chief Executive Officer of Shell plc, Mr Wael Sawan, during which the President directed the development of the next wave of measures required to unlock Nigeria’s deep offshore investment pipeline. Rather than pursuing project-specific solutions, the Federal Government transformed that directive into a comprehensive investment framework applicable across multiple categories of qualifying developments.
Given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, the framework replaces project-by-project negotiations with transparent eligibility criteria, clear implementation processes and a durable investment architecture that provides greater certainty for investors while safeguarding long-term national value.
The approval also enables NNPC Limited, as the Government’s nominated counterparty under the Production Sharing Contracts, to proceed with the necessary amendments to eligible Production Sharing Contracts required to implement the framework.
A defining feature of the reform is its emphasis on Nigerian industrial capability, said Olu Arowolo-Verheijen, the President’s special adviser on oil and gas.
“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. 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.”
President Bola Ahmed Tinubu commended the Federal Ministry of Justice, the Federal Ministry of Finance, the Federal Ministry of Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, investing partners and other industry stakeholders whose collaboration, technical expertise and commitment helped shape the framework.
President Tinubu said: “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. This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring 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.”