By Seun Ibiyemi
President Bola Ahmed Tinubu has approved a new investment framework aimed at unlocking up to $50 billion in deep offshore investments and reviving major capital-intensive oil and gas projects that have remained stalled for years.
The reform replaces project-by-project negotiations with a transparent, rules-based framework designed to provide greater certainty for investors and improve Nigeria’s competitiveness in attracting global capital.
The Presidency said the framework would support the development of the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project.
The reform was given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which establishes clear eligibility criteria and implementation processes for qualifying projects.
Under the new framework, NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts (PSCs), will proceed with the necessary amendments to eligible PSCs to implement the incentives.
The development followed Tinubu’s engagement with Shell plc Chief Executive Officer, 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 negotiating incentives separately for individual projects, the Federal Government subsequently developed a broader investment architecture applicable to multiple categories of qualifying offshore developments.
According to the President’s Special Adviser on Oil and Gas, Olu Arowolo-Verheijen, the framework also places emphasis on strengthening Nigeria’s industrial capacity.
She said qualifying projects would be required to maximise execution within Nigeria where commercially and technically feasible.
This, she said, would deepen domestic participation in engineering, fabrication, marine logistics, technical services and project management, while creating skilled employment and strengthening local supply chains.
“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 framework was developed through an inter-agency process involving fiscal, legal, commercial and regulatory institutions, as well as industry operators.
The Presidency said the initiative involved collaboration among 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.
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Tinubu said the reform was designed to address one of the major considerations influencing long-term investment decisions: certainty.
“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,” the President said.
He added that the new framework would create an investment environment based on clear rules, stronger 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,” Tinubu said.
The Presidency said the reform is expected to strengthen Nigeria’s position in the global competition for offshore investment while accelerating the development of its deepwater oil and gas resources.
