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.
According to a statement issued by the State House on August 11, the reform replaces project-by-project negotiations with a transparent, rules-based investment framework aimed at reviving large-scale deep offshore developments and attracting long-term capital into Nigeria’s oil and gas sector.
The approximately $10 billion Bonga South West project is expected to be among the first major developments to benefit from the framework, according to the State House.
The government said the reform is designed to improve Nigeria’s competitiveness in attracting global investment capital and provide greater certainty for investors seeking to develop large-scale offshore projects.
The framework was introduced through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
It will also allow NNPC Limited, the government’s nominated counterparty under Production Sharing Contracts, to proceed with amendments to eligible contracts required to implement the new investment regime.
The framework follows President Tinubu’s engagement with Wael Sawan, chief executive officer of Shell plc, during which the President directed the development of measures to unlock the country’s next wave of deep offshore investments.
Rather than developing incentives for individual projects, the government said it converted the directive into a broader framework applicable to multiple categories of qualifying developments.
Olu Arowolo-Verheijen, Special Adviser to the President on Oil and Gas, said the reform would also place greater emphasis on developing Nigeria’s domestic capacity to execute offshore projects.
“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible, strengthening domestic engineering, fabrication, marine logistics, technical services and project management,” she said.
She said the objective was not only to increase investment and production but also to create skilled jobs, deepen local supply chains and position Nigeria as a regional hub for deep offshore project execution.
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 roles in developing the framework.
The President said investment decisions were increasingly influenced by the certainty and predictability of the regulatory environment rather than the availability of natural resources alone.
“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.”
According to Tinubu, the reform is intended to create an investment environment based on clear rules, stronger 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,” he said.
The framework is expected to provide a more predictable fiscal and regulatory environment for investors while enabling the government to pursue new offshore production and associated economic opportunities.
