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New executive order replaces years of project-by-project bargaining with a transparent incentive framework aimed at restoring investor confidence.
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Federal Government targets up to $50 billion in fresh deep offshore investments, with the $10 billion Bonga South West project expected to lead the next wave of developments.
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NNPC Limited cleared to amend eligible Production Sharing Contracts, paving the way for stalled offshore projects to move towards execution.
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Presidency says reform will deepen local content, create skilled jobs, expand Nigerian industrial capacity, and strengthen the country’s position in the global energy investment market.
August 11, (THEWILL) — President Bola Tinubu has approved a far-reaching reform of Nigeria’s deep offshore oil and gas investment regime, unveiling a new incentive framework designed to unlock as much as $50 billion in fresh investment, revive long-delayed offshore projects, and reposition the country as a more competitive destination for global energy capital.
THEWILL reports that the reform is one of the most ambitious policy interventions in Nigeria’s upstream petroleum sector since the implementation of the Petroleum Industry Act (PIA), replacing the long-standing system of negotiating fiscal incentives on a project-by-project basis with a transparent, rules-based framework applicable to all qualifying deep offshore developments.
The Presidency said the policy is expected to remove one of the biggest obstacles that has discouraged investment in Nigeria’s deepwater sector for years—regulatory uncertainty—while providing investors with greater clarity, consistency, and long-term confidence.
The new framework, which takes effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, establishes transparent eligibility criteria, clearly defined implementation procedures, and a durable fiscal architecture intended to accelerate investment decisions on major offshore projects.
Government officials believe the framework will immediately support the commencement of the approximately $10 billion Bonga South West project, while opening the door for several other large-scale offshore developments whose combined investment value could reach $50 billion over the coming years.
The approval also authorises NNPC Limited, acting as the Federal Government’s nominated counterparty under existing Production Sharing Contracts (PSCs), to commence amendments to eligible contracts required to implement the new fiscal framework and allow qualified projects to proceed.
According to a statement issued on Tuesday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the decision followed President Tinubu’s engagement with Shell plc Chief Executive Officer, Wael Sawan, during which the President directed officials to develop a comprehensive strategy capable of unlocking Nigeria’s deep offshore investment pipeline instead of negotiating separate incentives for individual projects.
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Rather than adopting isolated project-specific arrangements, the administration transformed the directive into a nationwide investment framework expected to apply across multiple categories of qualifying offshore developments.
The Presidency disclosed that the framework emerged after months of consultations involving the Presidency, the Federal Ministry of Finance, the Federal Ministry of Justice, the Federal Ministry of Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Content Development and Monitoring Board (NCDMB), legal experts, fiscal authorities, regulators, and industry operators.
Speaking on the significance of the initiative, the President’s Special Adviser on Energy, Olu Arowolo-Verheijen, said the reform was deliberately designed to ensure that increased investment translates into broader economic benefits for Nigerians.
She explained that qualifying projects would maximise execution within Nigeria wherever commercially and technically feasible, thereby expanding opportunities for indigenous engineering firms, fabrication yards, marine logistics companies, technical service providers, and project management professionals.
According to her, the policy is expected to stimulate thousands of skilled jobs, strengthen domestic supply chains, build local industrial capacity, and establish Nigeria as Africa’s preferred hub for deep offshore project execution.
President Tinubu commended the ministries, agencies, and private sector stakeholders whose collaboration shaped the new investment architecture, describing the framework as a product of extensive technical engagement and institutional cooperation.
The President said nations that consistently attract long-term investment are not necessarily those with the largest natural resource deposits but those that provide policy certainty, predictable regulations, and strong institutions.
He said the new framework reflects his administration’s commitment to creating a stable investment climate capable of attracting capital, expanding Nigerian businesses, generating employment, and ensuring that the country’s vast petroleum resources deliver sustainable national value.
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Background
Nigeria’s deep offshore petroleum industry holds some of the country’s largest untapped crude oil reserves. However, many multi-billion-dollar projects have remained stalled for years because of prolonged fiscal negotiations, regulatory uncertainty, changing investment terms, and declining competitiveness compared with other oil-producing jurisdictions.
These challenges have prompted several international oil companies to delay Final Investment Decisions (FIDs), redirect capital to countries offering more stable fiscal environments, or slow the pace of offshore expansion in Nigeria.
Since assuming office, the Tinubu administration has pursued a series of reforms aimed at increasing crude oil production, restoring investor confidence, and improving the investment climate in the energy sector. The new Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, represents the administration’s most comprehensive attempt yet to eliminate long-standing investment bottlenecks by replacing discretionary negotiations with a predictable, transparent framework.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
