By Hadiza Mohammed, Northern Operation
President Bola Ahmed Tinubu has approved a new rules-based framework to unlock up to $50 billion in deep offshore oil and gas investment, ending decades of project-by-project negotiations that stalled Nigeria’s capital-intensive offshore developments.
The President gave the approval on Monday through the _Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026_, the State House said in a statement.
The reform replaces ad-hoc deals with transparent eligibility criteria and a durable investment structure designed to attract globally mobile capital and restart major projects.
A key beneficiary is the estimated $10 billion Bonga South West project, which has remained on the drawing board for years. The framework will also apply to other qualifying deep offshore developments.
The decision followed President Tinubu’s engagement with Shell plc CEO, Mr. Wael Sawan. Rather than approve single projects, the President directed government to build a comprehensive framework for the entire deep offshore pipeline.
“Given effect through the Tax Remission Order, 2026, the framework replaces project-by-project negotiations with transparent eligibility criteria, clear implementation processes and a durable investment architecture that provides greater certainty for investors while safeguarding long-term national value,” the statement said.
It also authorizes NNPC Limited, as government’s counterparty under Production Sharing Contracts, to proceed with amendments needed to implement the new rules.
The reform places strong emphasis on local content.
“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible,” said Olu Arowolo-Verheijen, Special Adviser to the President on Energy.
She added that the goal is to strengthen 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.”
The framework was developed through an extensive inter-agency process involving the Federal Ministries of Justice, Finance and Petroleum Resources, the Nigeria Revenue Service, NNPC Ltd, NUPRC, NCDMB and industry operators.
President Tinubu commended all stakeholders for their collaboration and said the reform is about building investor confidence.
“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,” the President said.
“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.”
Government expects the new architecture to unlock dormant deep offshore fields, boost crude output, create jobs, and reposition Nigeria as the preferred destination for offshore oil investment in Africa, according to a statement by Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy.
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