Nigeria is seeking to attract up to US$50 billion in new deep offshore oil and gas investment after President Bola Ahmed Tinubu approved a new framework designed to provide investors with greater certainty.
The reform is expected to revive major offshore developments that have remained stalled for years, with the estimated US$10 billion Bonga South West project identified as one of the first major developments to benefit.
The new policy replaces Nigeria’s previous approach of negotiating incentives separately for individual projects with a broader, rules-based framework covering eligible deep offshore developments.
It has been implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which establishes eligibility requirements and procedures for investors seeking to benefit from the incentives.
The Presidency said the framework was developed following President Tinubu’s engagement with Shell plc Chief Executive Officer, Wael Sawan, during which the President directed officials to develop measures capable of unlocking the country’s deep offshore investment pipeline.
Under the arrangement, NNPC Limited will be able to amend eligible Production Sharing Contracts to facilitate implementation of the new incentives.
The government says the policy is not solely aimed at attracting foreign capital but is also intended to deepen participation by Nigerian businesses in the offshore oil and gas industry.
Olu Arowolo-Verheijen, Special Adviser to the President on Oil and Gas, said qualifying projects would be expected to maximise work carried out within Nigeria where commercially and technically feasible.
This, she said, would create opportunities for local companies in engineering, fabrication, marine logistics, technical services and project management.
The government expects the investments to generate skilled employment, strengthen domestic supply chains and position Nigeria as a major regional hub for deep offshore project execution.
President Tinubu commended the ministries, regulatory bodies, NNPC Limited, industry partners and other stakeholders who contributed to the development of the framework.
He said investment decisions increasingly depend on certainty and predictable rules rather than the availability of natural resources alone.
The President said the new framework would help create an environment capable of attracting long-term capital, expanding opportunities for Nigerian businesses and ensuring that the country’s oil resources generate greater national value.
