Tinubu Approves New Framework to Attract $50bn Deep Offshore Investments

President Bola Ahmed Tinubu has approved a new investment framework aimed at attracting up to $50 billion in fresh investments into Nigeria’s deep offshore oil and gas sector and reviving major projects that have remained on hold for years.

The reform replaces the previous system of negotiating incentives on a project-by-project basis with a transparent, rules-based framework designed to provide investors with greater certainty and improve Nigeria’s competitiveness in attracting global capital.

The new policy will support the development of a new generation of deep offshore projects, beginning with the proposed $10 billion Bonga South West project.

The initiative followed President Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which the President directed the development of additional measures to unlock Nigeria’s deep offshore investment pipeline.

Rather than limiting the response to individual projects, the Federal Government developed a broader framework applicable to multiple categories of qualifying deep offshore developments.

The reform has been given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.

Under the framework, investors will be guided by clearly defined eligibility requirements and implementation procedures, providing a more predictable investment environment while protecting Nigeria’s long-term economic interests.

The approval also empowers NNPC Limited, acting as the Federal Government’s designated counterparty under the Production Sharing Contracts (PSCs), to make the necessary amendments to eligible contracts to facilitate implementation.

According to the President’s Special Adviser on Oil and Gas, Olu Verheijen, a key component of the framework is the promotion of local industrial capacity.

She said qualifying projects would be required to maximise activities carried out within Nigeria whenever commercially and technically feasible.

“This will strengthen domestic engineering, fabrication, marine logistics, technical services and project management,” Verheijen said.

She added that the objective extended beyond increasing oil production and attracting capital, stressing that the policy was also designed to create skilled employment, strengthen local supply chains and establish 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, Nigerian Content Development and Monitoring Board, investing partners and other industry stakeholders for their contributions to the development of the framework.

The President said the ability to provide investment certainty was more important than simply possessing abundant natural resources.

“Countries that attract long-term investment are not necessarily those with the greatest natural resources. They are the ones that provide the greatest certainty,” Tinubu said.

He said the reform demonstrated his administration’s commitment to creating an investment climate anchored on clear rules, strong institutions and sustainable partnerships.

According to him, the policy is intended to facilitate the flow of capital, expand opportunities for Nigerian businesses and ensure that the country’s natural resources generate lasting economic benefits for its citizens.