President Bola Ahmed Tinubu has approved a new investment framework for Nigeria’s deep offshore oil and gas sector, with the Federal Government projecting that the reform could unlock up to $50 billion in fresh investment.
The landmark policy is designed to revive major offshore developments that have remained delayed for years due to the high capital requirements and complex investment conditions associated with deepwater projects.
Under the new framework, the government is moving away from negotiating incentives on a project-by-project basis and adopting a transparent, rules-based system that provides clearer conditions for qualifying investments.
The reform is expected to support the development of the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project, while improving Nigeria’s ability to compete for international investment capital.
The Presidency said the decision followed President Tinubu’s engagement with Shell plc Chief Executive Officer, Wael Sawan, during which the President directed the development of additional measures capable of stimulating a new wave of investment in Nigeria’s offshore petroleum industry.
Rather than limiting the intervention to individual projects, the Federal Government converted the directive into a broader framework that can apply to multiple categories of eligible deep offshore developments.
The policy has been given legal effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. The new structure establishes eligibility requirements, implementation procedures and a more predictable investment architecture intended to give investors greater certainty while protecting Nigeria’s long-term economic interests.
The approval also clears the way for NNPC Limited, acting as the government’s nominated counterparty under Production Sharing Contracts (PSCs), to undertake the necessary amendments to eligible agreements to facilitate implementation of the new incentives.
A major component of the framework is its focus on strengthening local participation and industrial capacity.
Olu Arowolo-Verheijen, Special Adviser to the President on Oil and Gas, said qualifying projects would be expected to maximise activities carried out within Nigeria where commercially and technically practicable.
According to her, the approach is expected to stimulate domestic engineering, fabrication, marine logistics, technical services and project management.
Beyond increasing oil and gas investment and production, the government expects the framework to generate skilled employment, expand Nigerian supply chains and strengthen the country’s position as a regional centre for deep offshore project execution.
The Presidency 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 relevant 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 and Nigerian Content Development and Monitoring Board for their contributions to the initiative.
He also acknowledged the role of investing partners and other industry stakeholders whose technical expertise and collaboration contributed to the development of the framework.
President Tinubu described investment certainty as a critical factor in attracting long-term capital, noting that countries with abundant natural resources do not automatically receive the highest levels of 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.
He added that the reform demonstrates his administration’s commitment to creating an investment environment based on clear rules, effective institutions and sustainable partnerships.
The President said the ultimate objective is to encourage capital inflows, expand opportunities for Nigerian businesses, create jobs and ensure that the country’s natural resources generate sustainable value for its citizens.
The new deep offshore investment framework represents one of the Federal Government’s major efforts to reposition Nigeria’s upstream petroleum sector and attract the substantial capital required to develop complex offshore assets.
If effectively implemented, the policy could accelerate stalled projects, increase offshore production, deepen local content participation and strengthen Nigeria’s position in the global competition for energy investment.
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The announcement was contained in a statement issued on August 11, 2026, by Bayo Onanuga, Special Adviser to the President on Information and Strategy.
