Tinubu approves framework to unlock $50bn deep offshore investment

President Bola Tinubu has approved a new investment framework aimed at unlocking up to $50 billion in fresh investments in Nigeria’s deep offshore oil and gas sector.

The reform, announced on Tuesday, is designed to replace project-by-project negotiations with a transparent, rules-based system that provides greater certainty for investors and facilitates the development of large offshore projects that have remained stalled.

A statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the framework would support the next generation of deep offshore developments, beginning with the approximately $10 billion Bonga South West project.

The new policy takes effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which establishes eligibility criteria and implementation procedures for qualifying projects.

The framework also authorises NNPC Limited, as the government’s nominated counterparty under Production Sharing Contracts, to undertake necessary amendments to eligible contracts to implement the new incentives.

The President’s Special Adviser on Oil and Gas, Olu Arowolo-Verheijen, said the reform would also prioritise the development of Nigerian industrial capacity.

According to her, qualifying projects will be required to maximise execution within Nigeria where commercially and technically feasible, with the aim of 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,” she said.

The reform followed Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which the President directed the development of measures to unlock the country’s deep offshore investment pipeline.

Rather than limiting the response to individual projects, the Federal Government subsequently developed a broader framework applicable to multiple categories of qualifying offshore developments.

Tinubu said the reform was intended to improve Nigeria’s competitiveness in attracting long-term international 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.

He added that the framework would create an investment environment based on clear rules, strong institutions and long-term partnerships.

Tinubu commended the Ministries of Justice, Finance and Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, as well as industry stakeholders, for their contributions to the development of the framework.

The Presidency said the reform was expected to provide a more predictable investment environment while increasing oil and gas production, supporting local businesses and creating employment opportunities.