Nigeria’s deep offshore oil sector is set for a potential $50 billion investment push as the Federal Government seeks to attract fresh capital through new fiscal incentives, President Bola Tinubu has said.
Tinubu, represented by Vice-President Kashim Shettima, disclosed this on Tuesday in Abuja at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The President said the Deep Offshore Oil and Gas Projects Incentive Tax Order 2026 was designed to provide clearer investment criteria and reduce uncertainty around deep offshore projects.
“The order replaces that uncertainty with clear, published criteria and requires projects to be executed in Nigeria wherever applicable,” Tinubu said.
He said the incentive was expected to unlock up to $50 billion in new investment, beginning with the Bonga South-West project.
“The message to the world is simple: Nigeria is open for long-term investment and the terms are clear,” he said.
Tinubu said the reform was particularly significant because some of Nigeria’s largest oil prospects are located in the deep offshore but have remained undeveloped for years.
The President said the Petroleum Industry Act had provided a stronger foundation for investment through clearer rules, a more predictable regulatory framework and mechanisms for greater participation by host communities.
He said Nigeria had also made progress in improving security in oil-producing areas and attracting investors through open and competitive upstream investment processes.
According to Tinubu, investors who previously looked elsewhere were returning to Nigeria, which he said had become Africa’s leading destination for upstream investment for two consecutive years.
The President said the government intended to use petroleum resources to support wider economic growth, including agriculture, manufacturing, digital and creative industries.
Tinubu said more than 170 Host Communities Development Trusts had been funded to support projects in education, healthcare and other areas.
He said sustainable peace in oil-producing areas depended on fairness, inclusion and shared benefits between operators, government and host communities.
The President urged oil operators to meet their work programme commitments, local-content obligations, environmental standards and responsibilities to host communities in exchange for government incentives.
Tinubu charged the NUPRC with ensuring that the government’s reforms translate into predictable, transparent and reliable regulatory processes.
He urged the commission to work closely with other government agencies to prevent investors from facing conflicting requirements and unnecessary delays.
The President said the government would uphold the rule of law, sanctity of contracts and accountability as key pillars for sustaining investor confidence in Nigeria’s oil and gas industry.
He also said the administration would pursue an energy transition strategy suited to Nigeria’s needs, with greater use of gas for power, industrial activities and clean cooking, alongside renewable energy.
Tinubu congratulated the NUPRC on its fifth anniversary and urged its management and staff to sustain efforts to strengthen Nigeria’s upstream petroleum industry.
