President Bola Ahmed Tinubu, has approved a new investment framework to unlock up to US$50 billion to activate Nigeria’s stalled deep offshore oil and gas projects, with the US$10 billion Bonga South West development set to lead the first phase.
The framework is established under the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
It replaces years of project-by-project negotiations with transparent eligibility criteria, clear implementation processes, and a durable investment structure.
The Presidency said the reform is designed to restart large, capital-intensive offshore developments that have remained stalled for decades, while positioning Nigeria to compete for globally mobile investment capital.
The move follows President Tinubu’s engagement with the Chief Executive Officer of Shell plc, Mr Wael Sawan. During the meeting, the President directed the development of measures to unlock Nigeria’s deep offshore pipeline.
The government subsequently expanded that directive into a sector-wide framework applicable to multiple categories of qualifying projects, rather than single-project deals.
Bayo Onanuga , a presidential spokesman, said in a statement that the new architecture provides investors with greater certainty and protects long-term national value.
The approval also enables NNPC Limited, as the Government’s nominated counterparty under the Production Sharing Contracts, to proceed with the necessary amendments to eligible Production Sharing Contracts required to implement the framework.
A defining feature of the reform is its emphasis on Nigerian industrial capability, said Olu Arowolo-Verheijen, the President’s special adviser on oil and gas.
“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.”
Acting on the President’s directive, a framework that will deliver a durable investment architecture for Nigeria’s deep offshore sector has been developed following an extensive inter-agency process, in close collaboration with the presidency, fiscal, legal, commercial and regulatory institutions, alongside operators in the industry,
President Bola Ahmed Tinubu commended the Federal Ministry of Justice, the Federal Ministry of Finance, the Federal Ministry of Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, investing partners and other industry stakeholders whose collaboration, technical expertise and commitment helped shape the framework.
He 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. 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.”