Tinubu Approves $50bn Deep Offshore Investment Framework

The framework is expected to support the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project, while improving Nigeria’s competitiveness in attracting long-term international capital.

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 major projects that have remained stalled for years.

The reform, which takes effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, replaces project-by-project negotiations with a transparent, rules-based system for qualifying developments.

The framework is expected to support the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project, while improving Nigeria’s competitiveness in attracting long-term international capital.

The presidency said the initiative followed 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 providing incentives for individual projects, the Federal Government subsequently developed a broader framework with clear eligibility requirements, implementation procedures and provisions designed to provide investors with greater certainty while protecting Nigeria’s long-term economic interests.

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

The President’s Special Adviser on Oil and Gas, Olu Arowolo-Verheijen, said the reform would also strengthen Nigeria’s domestic industrial capacity.

She said qualifying projects would be required to maximise execution within Nigeria where commercially and technically feasible, thereby expanding opportunities in engineering, fabrication, marine logistics, technical services and project management.

According to her, the initiative is designed not only to increase investment and oil production but also to create skilled employment, deepen local supply chains and position Nigeria as a regional hub for deep offshore project execution.

Tinubu commended the Federal Ministry of Justice, Ministry of Finance, Ministry of Petroleum Resources, Nigeria Revenue Service, NNPC Limited, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Content Development and Monitoring Board, as well as industry partners and other stakeholders involved in developing the framework.

The President said countries that attract sustained investment are those that offer investors certainty, stressing that the reform reflects his administration’s commitment to clear rules, strong institutions and long-term 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,” Tinubu said.