By ebosele@hotmail.com
President Bola Ahmed Tinubu has approved a new investment framework aimed at unlocking up to $50 billion in deep offshore oil and gas investments and reviving large-scale offshore projects that have remained stalled for years.
The reform replaces project-by-project negotiations with a transparent, rules-based framework designed to provide greater certainty for investors and strengthen Nigeria’s competitiveness in attracting globally mobile capital.
The framework is expected to support the next generation of deep offshore developments, beginning with the approximately $10 billion Bonga South West project.
The development followed President Tinubu’s engagement with Shell plc Chief Executive Officer, Wael Sawan, during which the President directed the development of measures to unlock Nigeria’s deep offshore investment pipeline.
Rather than adopting project-specific solutions, the Federal Government subsequently developed a comprehensive investment framework applicable to multiple categories of qualifying projects.
The reform is given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which establishes clear eligibility criteria, implementation procedures and a durable investment architecture for the sector.
The approval also authorises NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts (PSCs), to undertake necessary amendments to eligible PSCs to implement the framework.
According to Olu Arowolo-Verheijen, Special Adviser to the President on Oil and Gas, a key component of the reform is its emphasis on strengthening Nigerian industrial capacity.
She said qualifying projects would be required to maximise execution within Nigeria wherever commercially and technically feasible, thereby creating opportunities for domestic engineering, fabrication, marine logistics, technical services and project management companies.
“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 framework was developed following an extensive inter-agency process involving the Presidency, fiscal, legal, commercial and regulatory institutions, as well as 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 (NUPRC), Nigerian Content Development and Monitoring Board (NCDMB), investing partners and other stakeholders for their contributions to the reform.
According to the President, certainty and predictability remain critical to attracting long-term 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,” Tinubu said.
He added that the reform reflected his administration’s determination to establish an investment environment based on 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.”
