President Bola Ahmed Tinubu has approved a new investment framework designed to unlock up to $50 billion in deep offshore oil and gas investments and revive major projects that have remained stalled for years.
The Federal Government described the reform as a major intervention aimed at restoring investor confidence, increasing oil and gas production and positioning Nigeria to attract a larger share of global capital into its upstream sector.
Under the new framework, the government will move away from project-by-project negotiations and adopt a transparent, rules-based system intended to provide investors with greater certainty and predictability.
The reform will support the next generation of deep offshore developments, beginning with the approximately $10 billion Bonga South West project.
The development was announced on Tuesday in a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy.
According to the statement, the initiative followed a meeting between President Tinubu and Shell plc Chief Executive Officer, Wael Sawan, during which the President directed the development of additional measures to unlock Nigeria’s deep offshore investment pipeline.
Rather than creating separate arrangements for individual projects, the administration said it transformed the President’s directive into a comprehensive framework covering multiple categories of qualifying deep offshore developments.
The framework is being implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which establishes transparent eligibility criteria and procedures for projects seeking to benefit from the new incentives.
The government said the framework is designed to provide investors with greater certainty while protecting Nigeria’s long-term economic interests.
As part of the implementation process, NNPC Limited, the government’s nominated counterparty under Production Sharing Contracts, has been authorised to proceed with amendments to eligible PSCs required to give effect to the new framework.
Beyond attracting foreign capital, the administration said the policy is also designed to ensure that Nigerians and domestic businesses benefit significantly from the anticipated wave of offshore investments.
A key component of the framework is the requirement that qualifying projects maximise activities carried out within Nigeria wherever commercially and technically feasible.
This is expected to strengthen local engineering, fabrication, marine logistics, technical services and project management, while creating opportunities for Nigerian companies to participate more extensively in the offshore oil and gas value chain.
Olu Arowolo-Verheijen, Special Adviser to the President on Oil and Gas, said the reform would enable Nigeria to capture broader economic benefits from new offshore investments.
“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,” she said.
She explained that the objective was not simply 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.
The Federal Government said the framework was developed through an extensive inter-agency process involving fiscal, legal, commercial and regulatory institutions, as well as industry operators and other stakeholders.
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 initiative.
Speaking on the importance of creating a predictable investment environment, Tinubu argued that countries with abundant natural resources do not automatically attract long-term capital.
“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,” the President said.
According to him, the reform reflects his administration’s determination to establish an investment environment built around clear rules, stronger institutions and enduring partnerships.
“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,” Tinubu said.
The government expects the new framework to help restart capital-intensive deep offshore developments that have remained inactive for years and attract fresh investment into Nigeria’s upstream oil and gas industry.
It also expects the policy to increase oil and gas production, generate skilled employment, expand domestic supply chains and strengthen the participation of Nigerian companies in major offshore projects.
With as much as $50 billion in potential investment on the table, the framework represents one of the administration’s most significant attempts to revive Nigeria’s deep offshore sector and turn its vast offshore resources into increased production, industrial activity and broader economic gains.