By Osaretin Osadebamwen
President Bola Tinubu has approved a landmark reform that replaces project-by-project negotiations with a transparent investment framework designed to unlock up to $50 billion in deep offshore investment, presidential spokesperson Bayo Onanuga announced in an official statement.
The reform, which builds on President Tinubu’s engagement with Shell plc CEO Wael Sawan, establishes a rules-based investment architecture capable of supporting the next generation of deep offshore developments. It begins with the approximately $10 billion Bonga South West project, one of Nigeria’s most significant but long-stalled offshore oil developments.
According to Onanuga, the decision directly followed the President’s directive to develop measures required to unlock Nigeria’s deep offshore investment pipeline. The reform is given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which replaces project-by-project negotiations with transparent eligibility criteria, clear implementation processes, and a durable investment architecture providing greater certainty for investors while safeguarding long-term national value.
The approval also enables NNPC Limited, as the government’s nominated counterparty under Production Sharing Contracts, to proceed with necessary amendments to eligible PSCs, paving the way for accelerated development of Nigeria’s offshore oil and gas assets.
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,” she stated.
The new framework aims to transform Nigeria’s deep offshore sector from a series of ad-hoc negotiations into a predictable, rules-based environment that attracts long-term capital. The reform addresses decades of stalled investment in Nigeria’s offshore oil sector, where capital-intensive projects have struggled to secure final investment decisions due to regulatory uncertainty and opaque negotiation processes.
President Tinubu 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.”
The announcement marks a significant shift in Nigeria’s approach to oil and gas investment, positioning the country to compete more effectively for global capital in an increasingly competitive energy landscape. Industry analysts expect the framework to catalyse additional deep offshore projects beyond Bonga South West, potentially unlocking billions more in foreign direct investment over the coming years.
