Tinubu Approves Framework to Unlock $50bn Deep Offshore Investment

President Bola Ahmed Tinubu has approved a new investment framework aimed at unlocking up to $50 billion in fresh investment in Nigeria’s deep offshore oil and gas sector.

The landmark reform is designed to replace project-by-project negotiations with a transparent, rules-based investment framework capable of supporting the next generation of large-scale offshore developments.

The reform will initially support the approximately $10 billion Bonga South West project, while creating a broader investment architecture to revive other capital-intensive deep offshore projects that have remained stalled for years.

The Presidency said the decision followed President Tinubu’s engagement with the Chief Executive Officer of Shell plc, Wael Sawan, during which the President directed the development of measures to unlock the country’s deep offshore investment pipeline.

Rather than adopting project-specific solutions, the Federal Government said it transformed the directive into a comprehensive framework applicable to multiple categories of qualifying developments.

The framework takes effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, providing clear eligibility criteria, implementation processes and greater certainty for investors while safeguarding Nigeria’s long-term economic interests.

The approval also authorises NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts, to proceed with necessary amendments to eligible contracts to implement the new framework.

Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said the framework would also strengthen Nigeria’s domestic industrial capacity.

She explained that qualifying projects would be required to maximise execution within Nigeria wherever commercially and technically feasible, thereby strengthening local engineering, fabrication, marine logistics, technical services and project management.

According to her, the objective is not only to increase investment and oil production but also to create skilled employment, deepen local supply chains and position Nigeria as a regional hub for deep offshore project execution.

The framework was developed following an extensive inter-agency process involving the Presidency, fiscal, legal, commercial and regulatory institutions, as well as operators and other stakeholders in the oil and gas industry.

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 initiative.

The President said the reform was aimed at creating the certainty required to attract long-term investment into Nigeria.

“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.”

The Presidency said the new framework is expected to strengthen Nigeria’s competitiveness for globally mobile investment capital and accelerate the development of the country’s deep offshore oil and gas resources.