Key Points
- Reform is expected to unlock up to $50 billion in deep offshore investment.
- New framework replaces project-by-project negotiations with transparent eligibility rules.
- Bonga South West, valued at about $10 billion, is expected to be among the first projects to benefit.
- Government says the framework will strengthen local capacity and create skilled jobs.
Main Story
President Bola Tinubu has approved a new investment framework expected to unlock up to $50 billion in Nigeria’s deep offshore oil and gas sector and revive projects that have stalled.
The reform replaces negotiations conducted on individual projects with a common framework that sets out eligibility requirements and implementation procedures for qualifying developments.
The Presidency disclosed this in a statement issued by Presidential Spokesperson, Mr Bayo Onanuga, on Tuesday in Abuja.
According to the statement, the framework is expected to support a new wave of deep offshore developments, starting with the approximately $10 billion Bonga South West project.
It is also intended to make Nigeria more competitive in attracting long-term international capital by giving investors greater certainty over the fiscal and regulatory conditions governing eligible projects.
The decision followed Tinubu’s engagement with Shell plc Chief Executive Officer, Mr Wael Sawan, where discussions focused on measures to revive Nigeria’s deep offshore investment pipeline.
The Federal Government subsequently opted for a broad framework that could apply to multiple qualifying projects rather than developing separate solutions for individual investments.
The framework was established through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which sets out eligibility criteria and processes for implementation.
The Presidency said the approach would provide greater certainty for investors while protecting the country’s long-term interests.
The approval also authorises NNPC Ltd., acting as the government’s nominated counterparty under Production Sharing Contracts, to make the amendments required to give effect to the framework.
Tinubu commended the Federal Ministries of Justice, Finance and Petroleum Resources, the Nigeria Revenue Service, NNPC Ltd. and other stakeholders for their contributions to the reform.
He also acknowledged the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board and investing partners involved in developing the framework.
Mrs Olu Verheijen, Special Adviser to the President on Energy, said the framework was also designed to increase the participation of Nigerian businesses in deep offshore project execution.
She said qualifying projects would be expected to maximise execution within Nigeria where this was commercially and technically feasible.
According to her, the objective extends beyond increasing oil production and investment to include skilled employment, stronger local supply chains and greater development of Nigeria’s offshore project capabilities.
The Issues
Nigeria has struggled to attract sufficient long-term investment into some deep offshore projects, with project economics and investment certainty affecting the development pipeline. The new framework seeks to provide uniform rules for qualifying projects while encouraging investment and greater local participation.
What’s Being Said
“The countries that attract long-term investment are not necessarily those with the greatest natural resources.” – President Bola Tinubu
“They are the ones that provide the greatest certainty.” – President Bola Tinubu
“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,” – President Bola Tinubu
“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,” – Mrs Olu Verheijen, Special Adviser to the President on Energy
What’s Next
NNPC Ltd. is expected to proceed with the amendments required to implement the new framework under the relevant Production Sharing Contracts. Qualifying offshore projects, including Bonga South West, are expected to be assessed under the new rules.
Bottom Line
The Tinubu administration is replacing project-specific offshore investment negotiations with a broader rules-based framework in an effort to revive stalled developments, attract up to $50 billion in investment and increase Nigeria’s participation in deep offshore project execution.
