The Federal Government has moved to unlock up to $50 billion in new investment in Nigeria’s deep offshore oil and gas sector with the approval of a new investment framework by President Bola Ahmed Tinubu.
The framework is designed to replace project-by-project negotiations with a transparent, rules-based system that provides greater certainty for investors and facilitates the revival of large-scale offshore developments that have remained stalled for years.
The reform will begin with the approximately $10 billion Bonga South West project and is expected to strengthen Nigeria’s competitiveness in attracting globally mobile investment capital.
The development was announced in a statement issued on Tuesday by Bayo Onanuga, Special Adviser to the President on Information and Strategy.
The statement said the reform followed President Tinubu’s engagement with Shell plc Chief Executive Officer, Wael Sawan, during which the President directed the development of measures to unlock the next wave of investment in Nigeria’s deep offshore sector.
Rather than pursuing project-specific solutions, the Federal Government developed a comprehensive framework applicable to multiple categories of qualifying deep offshore developments.
The framework, given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, establishes clear eligibility criteria and implementation procedures while providing a more predictable investment environment.
The approval also enables NNPC Limited, as the government’s nominated counterparty under Production Sharing Contracts, to proceed with necessary amendments to eligible contracts required to implement the framework.
President’s Special Adviser on Oil and Gas, Olu Arowolo-Verheijen, said the reform would strengthen Nigeria’s domestic industrial capacity.
“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible,” she said.
She said the approach would strengthen “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,” Arowolo-Verheijen said.
She added that the framework was designed to provide a “durable investment architecture” capable of supporting the next generation of deep offshore developments.
According to her, the initiative would also give investors “greater certainty” while ensuring that Nigeria continues to derive long-term value from its offshore resources.
The framework was developed through an extensive inter-agency process involving fiscal, legal, commercial and regulatory institutions, alongside industry operators.
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.
Tinubu said the ability to provide certainty would determine Nigeria’s success in competing for international investment.
“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.
“This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships,” he added.
Tinubu said the government was committed to creating an environment where investment could translate into broader economic opportunities.
“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 President further stressed the importance of collaboration among government institutions and private-sector investors in delivering the reforms.
The initiative is expected to accelerate the development of major offshore projects, increase oil and gas production, attract fresh capital and expand opportunities for Nigerian businesses across the oil and gas value chain.
It is also expected to strengthen Nigeria’s position as a destination for large-scale offshore investment and support the development of local technical and industrial capacity.