President Bola Ahmed Tinubu, GCFR, has approved a landmark reform to unlock up to US$50 billion in new deep offshore investment and revive large-scale, capital-intensive offshore developments that have remained stalled for decades.
The reform replaces project-by-project negotiations with a transparent, rules-based investment framework designed to provide greater certainty for investors, strengthen Nigeria’s competitiveness for globally mobile capital and support the next generation of deep offshore developments.
The framework will initially support the approximately US$10 billion Bonga South West project, while establishing a broader investment architecture applicable to multiple categories of qualifying deep offshore developments.
The initiative follows President Tinubu’s engagement with Shell plc Chief Executive Officer, Mr. Wael Sawan, during which the President directed the development of measures to unlock the next wave of investment in Nigeria’s deep offshore sector. Rather than pursuing project-specific solutions, the Federal Government has translated that directive into a comprehensive framework with clear eligibility criteria, implementation processes and durable investment rules.
The framework takes effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. It provides a predictable structure for qualifying projects while safeguarding Nigeria’s long-term national interests and value from its natural resources.
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 key feature of the reform is its focus on strengthening Nigerian industrial capacity, 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 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 for their collaboration, technical expertise and commitment in developing 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.”