Tinubu Approves $50bn Deep Offshore Investment Framework

President Bola Ahmed Tinubu has approved a new framework designed to unlock up to $50 billion in deep offshore investments and revive major oil and gas projects that have remained stalled for decades.

The framework replaces project-by-project negotiations with a transparent, rules-based investment regime aimed at providing greater certainty for investors and improving Nigeria’s competitiveness in attracting global capital.

The State House said the reform, implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, would support the next generation of deep offshore developments, beginning with the approximately $10 billion Bonga South West project.

Deep OFFSHORE ORDER 2026

The development follows President Tinubu’s engagement with Shell plc Chief Executive Officer, Wael Sawan, during which the President directed the government to develop measures to unlock Nigeria’s deep offshore investment pipeline.

Rather than pursuing individual solutions for specific projects, the government said it had developed a comprehensive framework applicable to multiple categories of qualifying deep offshore developments.

According to the State House, the framework establishes clear eligibility criteria, implementation processes and a durable investment architecture while safeguarding Nigeria’s long-term interests.

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

A major focus of the reform is increasing Nigerian participation in offshore project execution.

The State House said qualifying projects would maximise execution within Nigeria wherever commercially and technically feasible, with greater opportunities for domestic engineering, fabrication, marine logistics, technical services and project management.

It said the initiative was expected to increase investment and production, create skilled jobs, deepen local supply chains and strengthen Nigeria’s position as a regional hub for deep offshore project execution.

The framework was developed through an inter-agency process led by the Presidency, involving fiscal, legal, commercial and regulatory institutions, as well as industry stakeholders.

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, among others, for their contributions to the initiative.

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

“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.”

Tinubu added that the government was building an investment environment based on “clear rules, strong institutions and enduring partnerships”, with the aim of attracting capital, expanding opportunities for Nigerian businesses and ensuring greater national value from the country’s natural resources.

The latest framework builds on earlier presidential efforts to provide targeted incentives for the Bonga South West project.

In March, NNPC said presidential approval of fiscal incentives was expected to unlock the long-delayed final investment decision on the Bonga Southwest Aparo project, with the project estimated to attract about $20 billion in foreign direct investment.