President Bola Tinubu has approved a landmark reform aimed at unlocking up to $50 billion in deep offshore investment and reviving stalled offshore projects.

The reform replaces project-by-project negotiations with a transparent, rules-based investment framework designed to attract long-term capital into Nigeria’s offshore oil and gas sector.

Bayo Onanuga, presidential spokesperson, announced this in a statement on Tuesday in Abuja.

According to the presidency, the framework will support a new generation of deep offshore developments, beginning with the approximately $10 billion Bonga South West project.

It is also expected to strengthen Nigeria’s competitiveness in attracting globally mobile investment capital.

The decision follows Mr Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which measures to unlock Nigeria’s deep offshore investment pipeline were discussed.

Rather than adopting project-specific solutions, the federal government developed a comprehensive framework applicable to multiple qualifying developments.

The framework, established through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026,  introduces transparent eligibility criteria and clear implementation processes.

It also provides greater certainty for investors while safeguarding long-term national value.

The approval enables NNPC Limited, as the government’s nominated counterparty under production sharing contracts, to proceed with amendments required to implement the framework.

Mr Tinubu commended the Federal Ministries of Justice, Finance and Petroleum Resources, as well as the Nigeria Revenue Service, NNPC Limited and other stakeholders for their contributions.

He also praised the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, and investing partners for helping to shape the framework.

“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.

“This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring 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,” Mr Tinubu said.

Olu Verheijen, Special Adviser to the President on Energy, said the reform places strong emphasis on strengthening Nigerian industrial capacity.

“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible.

“The objective is not only to increase investment and production, but also to create skilled jobs, deepen local supply chains and position Nigeria as Africa’s regional hub for deep offshore project execution,” she said. 

(NAN)