President Bola Tinubu has approved a major reform designed to unlock up to $50 billion in deep offshore oil and gas investment and revive stalled projects across Nigeria’s energy sector.
The new framework replaces ad-hoc, project-by-project negotiations with a transparent, rules-based system intended to attract long-term capital. It was announced in a statement by Presidential Spokesperson Bayo Onanuga on Tuesday in Abuja.
The reform is expected to support a fresh wave of deep offshore developments, starting with the estimated $10 billion Bonga South West project. Officials say it will also improve Nigeria’s competitiveness in the global contest for mobile investment capital.
The decision follows discussions between President Tinubu and Shell plc Chief Executive Officer Wael Sawan on measures to unlock the country’s deep offshore investment pipeline.
Rather than offering bespoke solutions for individual projects, the Federal Government has established a comprehensive framework that applies to multiple qualifying developments. The rules are set out in the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. The order introduces clear eligibility criteria and implementation processes, giving investors greater certainty while protecting long-term national value.
The approval allows NNPC Ltd., acting as the government’s nominated counterparty under Production Sharing Contracts, to move ahead with the contractual amendments needed to put the framework into effect.
President Tinubu praised the Ministries of Justice, Finance and Petroleum Resources, the Nigeria Revenue Service, NNPC Ltd. and other stakeholders for their roles in developing the policy. He also acknowledged the contributions of the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, and investing partners.
“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,” Tinubu said. “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.”
Olu Verheijen, Special Adviser to the President on Energy, said the framework places strong emphasis on building Nigerian industrial capacity. Qualifying projects will maximise local execution wherever it is commercially and technically feasible, she noted, with the dual goals of raising investment and production while creating skilled jobs, deepening domestic supply chains and positioning Nigeria as a regional hub for deep offshore project delivery in Africa.
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