President Bola Tinubu has signed a new investment framework designed to attract up to $50 billion into Nigeria's deep offshore oil sector, ending the practice of negotiating incentives on a project-by-project basis. The framework, given legal effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, applies to multiple qualifying developments rather than individual projects.
Details of the Deep Offshore Reform
The immediate focus of the policy is the approximately $10 billion Bonga South West development, one of the large stalled projects the framework aims to unlock. Presidential spokesperson Bayo Onanuga announced the decision in a statement on Tuesday, August 11, stating that the framework provides clear eligibility rules and a durable structure for investors.
The reform follows President Tinubu's earlier engagement with Shell plc Chief Executive Wael Sawan, during which the President directed officials to develop broader measures for unlocking Nigeria's offshore investment pipeline. Rather than a narrow, project-specific solution, the Federal Government built a comprehensive framework applicable to several developments at once.
The approval also clears the Nigerian National Petroleum Company (NNPC) Limited, as the government's nominated counterparty under existing Production Sharing Contracts, to proceed with necessary amendments to eligible contracts in order to implement the new rules.
Local Content at the Centre of the Framework
Special Adviser on Oil and Gas Olu Arowolo-Verheijen explained that local industrial capacity is central to how the framework operates. "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. 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," Arowolo-Verheijen said.
President Tinubu credited the Federal Ministries of Justice, Finance and Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, and investing partners for their roles in shaping the policy.
President Tinubu's Statement on the Reform
Speaking on the reform, President Tinubu said: "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."
He added: "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."
The full statement from the presidency was shared on a presidential aide's verified X account. This development comes after the NNPC reduced petrol prices at its outlets, with petrol now selling at N1,205 per litre in Lagos, down N60 from the previous rate of N1,265, as competition among depot operators and domestic refiners continues to push rates lower.
