The Nigerian National Petroleum Company Limited (NNPC Ltd.) has said the Federal Government’s new Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, will accelerate investment in deepwater projects and support Nigeria’s ambition to raise crude oil production to three million barrels per day (MMbopd) by 2030.
The NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, described the new incentive regime as a landmark reform that would strengthen Nigeria’s competitiveness in the global deep offshore investment market.
The Order, signed by President Bola Ahmed Tinubu, establishes a rules-based fiscal framework for qualifying deep offshore developments, replacing years of project-by-project negotiations with clearer and more predictable investment conditions.
According to NNPC Ltd., the framework is expected to unlock more than $50 billion in new investment and accelerate Final Investment Decisions (FIDs) on major offshore projects, including Bonga South-West, Zabazaba and Owowo.
Bonga South-West, approved in March 2026, is expected to be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008 and is among the first major projects expected to benefit from the new framework.
Ojulari said the reform sent a strong signal to international investors that Nigeria is committed to creating a stable, competitive and investment-friendly environment for deep offshore oil and gas development.
“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development,” he said.
According to him, fiscal certainty remains a critical driver of investment decisions, stressed that the new framework provides the additional clarity the industry has long sought.
“For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets,” Ojulari said.
He added that the policy would strengthen NNPC Ltd.’s confidence in achieving its 3 MMbopd production ambition while creating greater value for its shareholders and the Nigerian economy.
The NNPCL GCEO disclosed that recent reforms across the petroleum sector had already stimulated more than $34 billion in new investment commitments.
He said the Deep Offshore Incentives Order would build on the momentum by enabling timely FIDs on strategic offshore developments and helping to revive capital-intensive projects that have remained delayed.
The official gazette shown that the new framework provides production tax credits for qualifying deep offshore oil developments, with the applicable rates linked to production levels and project reserves. It also provided for supplementary production tax credits for qualifying projects, subject to specified conditions and limits.
The framework is designed to improve the economics of deep offshore developments, which typically required huge upfront capital, specialised technology and long development timelines.
Ojulari commended President Tinubu for his leadership and commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector through a series of Presidential Executive Orders and other reforms.
He said the latest measure would further position Nigeria to compete for globally mobile capital while supporting economic activity, job creation and deeper participation by Nigerian businesses in the offshore oil and gas value chain.
The NNPC Ltd. boss reaffirmed the company’s commitment to driving sustainable production growth, attracting responsible investment, strengthening Nigeria’s energy security and delivering long-term value to the Federation.
