President Bola Ahmed Tinubu has approved a new investment framework aimed at unlocking up to $50 billion in fresh investment in Nigeria’s deep offshore oil and gas sector.
The landmark reform is designed to replace project-by-project negotiations with a transparent, rules-based investment framework capable of reviving large-scale offshore developments that have remained stalled for years.
The Presidency said the framework would support the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project, while improving Nigeria’s competitiveness in attracting globally mobile investment capital.
The reform followed President Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which the President directed the development of measures to unlock the country’s deep offshore investment pipeline.
According to the Presidency, rather than adopting project-specific solutions, the Federal Government transformed the directive into a comprehensive framework applicable to multiple categories of qualifying developments.
The framework take effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which establishes clear eligibility criteria, implementation processes and an investment architecture designed to provide greater certainty to investors while protecting Nigeria’s long-term interests.
The approval also authorises NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts (PSCs), to proceed with amendments to eligible PSCs necessary to implement the framework.
President’s Special Adviser on Oil and Gas, Olu Arowolo-Verheijen, said a major component of the reform was the emphasis on strengthening Nigerian industrial capacity.
She said qualifying projects would maximise execution within Nigeria wherever commercially and technically feasible, with the aim of expanding 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,” she said.
The Presidency said the framework was developed following an extensive inter-agency process involving fiscal, legal, commercial and regulatory institutions, the Presidency and industry operators.
President Tinubu commended the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum Resources, Nigeria Revenue Service, NNPC Limited, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Content Development and Monitoring Board, investing partners and other industry stakeholders for their contributions to the reform.
The President said countries that attract long-term investment are not necessarily those with the greatest natural resources, but those that provide the greatest certainty.
“This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships,” Tinubu said.
He added that the framework would create conditions for capital to flow, Nigerian businesses to grow and the country’s natural resources to deliver lasting national value.
