President Bola Tinubu has approved a new investment framework aimed at unlocking up to $50bn in deep offshore investment and reviving major oil and gas projects that have stalled for years.
The framework, given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, will replace project-by-project negotiations with transparent eligibility criteria and implementation processes for qualifying developments.
The presidency, through a statement by Bayo Onanuga, said the framework would begin with the $10bn Bonga South West project.
The approval also allows NNPC Limited, the government’s nominated counterparty under production sharing contracts, to proceed with amendments to eligible contracts required to implement the framework.
The reform followed Tinubu’s engagement with Shell Plc’s Chief Executive Officer, Wael Sawan, during which the president directed the development of measures to unlock the next wave of deep offshore investments.
According to Onanuga, the directive was subsequently developed into a framework covering multiple categories of qualifying projects rather than individual project-specific arrangements.
Olu Arowolo-Verheijen, the president’s special adviser on oil and gas, said the framework would also require qualifying projects to maximise execution within Nigeria where commercially and technically feasible.
“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible, strengthening 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.”
Tinubu commended the Ministry of Justice, Ministry of Finance, 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 participants involved in developing the framework.
The president said the reform was intended to give investors certainty while protecting Nigeria’s long-term interests.
“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. This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring 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,” he said.
(The Whistler)
