$50bn Deepwater Investment to Boost Nigeria’s Oil Production — Ojulari

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has described the Federal Government’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, as a major step towards attracting fresh investment and reversing declining oil production in Nigeria.

Speaking on the development, NNPC Ltd. Group Chief Executive Officer, Bashir Bayo Ojulari, said the new fiscal framework could unlock more than $50 billion in investment and support Nigeria’s ambition of producing 3 million barrels of crude oil per day by 2030.

The Federal Government signed the Deep Offshore Incentives Order to provide a more predictable and competitive fiscal framework for qualifying greenfield deep offshore oil and gas projects.

The policy is expected to provide investors with greater certainty, accelerate Final Investment Decisions (FIDs) and facilitate the development of Nigeria’s offshore oil resources.

According to NNPC Ltd., projects expected to benefit from the framework include Bonga South-West, Zabazaba and Owowo deep offshore developments.

Bonga South-West, which was approved in March 2026, is expected to record the first FID on a Nigerian deepwater production sharing contract asset since 2008.

Ojulari described the signing of the order as one of the most significant policy interventions in Nigeria’s upstream oil sector in recent years.

“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development,” Ojulari said.

He said fiscal certainty remained a critical factor in investment decisions, adding that the new framework provides the clarity that investors have long sought.

Ojulari said the order also aligns with NNPC Ltd.’s strategy of protecting existing production, accelerating near-term growth and attracting investment into high-value assets.

“It strengthens our confidence in achieving our strategic production ambition of 3 MMbopd while creating greater value for our shareholders and the Nigerian economy,” he said.

The NNPC chief executive said recent reforms across the petroleum sector had already stimulated more than $34 billion in new investment commitments.

He said the Deep Offshore Incentives Order would build on the momentum by supporting timely FIDs on strategic offshore developments.

The development comes as Nigeria seeks to increase crude oil production amid concerns over declining output from mature fields and the long development timelines associated with deepwater projects.

The government is therefore relying on new fiscal and regulatory measures to attract the capital required to develop major offshore assets and strengthen the country’s oil production base.

Ojulari also commended President Bola Ahmed Tinubu for his leadership and commitment to creating what he described as an enabling environment for investment and sustainable growth in the energy sector.

NNPC Ltd said the new policy would support sustainable production growth, attract responsible investment, strengthen Nigeria’s energy security and deliver long-term value to the Federation.