Reform targets stalled projects, with $10bn Bonga South West development among first beneficiaries….
President Bola Tinubu has approved a new investment framework aimed at attracting up to $50 billion in deep offshore oil and gas investments and reviving major projects that have remained undeveloped for years.
The reform is designed to replace project-by-project negotiations with a transparent, rules-based system intended to provide greater certainty for investors and improve Nigeria’s competitiveness in the global energy market.
According to a statement issued by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the framework will initially support projects including the approximately $10 billion Bonga South West development.
The reform followed President Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which the President directed the development of measures to unlock the country’s deep offshore investment pipeline.
Rather than developing separate incentives for individual projects, the Federal Government converted the directive into a broader framework applicable to qualifying deep offshore developments.
The new policy is implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which establishes eligibility requirements, implementation procedures and a longer-term investment structure.
The framework also permits NNPC Limited, as the government’s designated counterparty under Production Sharing Contracts, to make the necessary amendments to eligible contracts to facilitate implementation.
The reform is also expected to strengthen Nigeria’s domestic participation in deep offshore projects.
The Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said qualifying projects would be required to maximise activities carried out within Nigeria where commercially and technically feasible.
She said this would support domestic engineering, fabrication, marine logistics, technical services and project management.
According to her, the policy is intended not only to increase oil and gas investment and production but also to create skilled employment, strengthen local supply chains and position 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 and Nigerian Content Development and Monitoring Board for their contributions to the framework.
The President also acknowledged the role of investors and other industry stakeholders in developing the policy.
Tinubu said the ability to attract long-term investment depended less on the size of a country’s natural resources than on the certainty provided to investors.
He said the new framework was part of his administration’s effort to establish an investment environment based on clear rules, strong institutions and sustainable partnerships.
The Federal Government expects the reform to unlock capital for previously stalled offshore developments, increase production and generate wider economic benefits through local jobs, businesses and supply chains.
