By Seun Ibiyemi
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has said the Federal Government’s new tax incentive for deep offshore oil and gas projects could unlock more than $50 billion in fresh investments and accelerate the development of Nigeria’s untapped offshore resources.
NNPC said the signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026 provides greater fiscal certainty for investors and is expected to accelerate Final Investment Decisions (FIDs) on major offshore projects.
The company described the new framework as a major step towards achieving Nigeria’s ambition of raising crude oil production to three million barrels per day by 2030.
According to NNPC, the incentive package will support projects including Bonga South-West, Zabazaba and Owowo, with Bonga South-West expected to become the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008.
The Group Chief Executive Officer of NNPC Ltd., Bashir Bayo Ojulari, said the new policy would send a strong signal to international investors that Nigeria was prepared to provide a competitive and predictable environment for deep offshore developments.
“Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought,” Ojulari said.
He said the policy aligned with NNPC’s strategy of protecting existing production, accelerating near-term growth and attracting fresh capital into high-value oil and gas assets.
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Ojulari added that the new framework would strengthen the company’s confidence in achieving its three million barrels per day production target while increasing value for the Nigerian economy.
$34bn investment commitments
NNPC said recent reforms in the petroleum industry had already generated more than $34 billion in new investment commitments, with the latest deep offshore incentive expected to build on that momentum.
The company said the new fiscal framework would enable investors to take timely investment decisions on strategic offshore projects and support sustainable production growth.
NNPC also linked the development to President Bola Ahmed Tinubu’s broader efforts to improve Nigeria’s investment climate through a series of Presidential Executive Orders targeting reforms in the oil and gas industry.
The company said the latest intervention would help strengthen Nigeria’s energy security, attract responsible long-term capital and increase the value derived from the country’s offshore petroleum resources.
