Deep offshore tax order could unlock $50bn investment — NNPC

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has said the Federal Government’s new tax incentive for deep offshore oil and gas projects could unlock about $50 billion in fresh investment in Nigeria’s upstream sector.

NNPC said the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, signed by the Federal Government, would provide investors with greater fiscal certainty and encourage long-term capital commitments to offshore developments.

The company described the order as a major reform capable of accelerating Final Investment Decisions (FIDs) and maximising the value of Nigeria’s deepwater oil and gas resources.

NNPC identified Bonga South-West, Zabazaba and Owowo as some of the projects expected to benefit from the new incentive.

Bonga South-West, which received approval in March 2026, is expected to become the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008.

Group Chief Executive Officer of NNPC Ltd., Bashir Bayo Ojulari, said the new framework sends a strong signal to international investors that Nigeria is committed to creating a stable and competitive environment for deep offshore development.

He said fiscal certainty remained critical to investment decisions and that the tax remission order provided the clarity needed to unlock capital for major projects.

“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development,” Ojulari said.

According to him, the measure aligns with NNPC’s strategy of protecting existing production, accelerating near-term growth and attracting investment into high-value assets.

Ojulari said the incentive would also strengthen confidence in NNPC’s ambition to raise Nigeria’s crude oil production to three million barrels per day by 2030.

He disclosed that recent reforms in the oil and gas sector had already generated more than $34 billion in investment commitments, adding that the latest order would build on the momentum by facilitating FIDs on strategic offshore projects.

The NNPC boss commended President Bola Tinubu for using executive orders to create what he described as a more conducive environment for investment and sustainable growth in the petroleum sector.

He said the latest development would support increased production, attract responsible investment, strengthen Nigeria’s energy security and generate long-term value for the country.