President Tinubu has approved Deep Offshore Oil Reform to attract up to $50bn investment.
NewsOnline Nigeria reports that President Bola Tinubu has approved a new investment framework aimed at attracting up to $50 billion into Nigeria’s deep offshore oil and gas industry and reviving projects that have remained stalled for years.
The reform replaces project-by-project negotiations between investors and the Federal Government with standard eligibility requirements, defined implementation procedures and a rules-based incentive structure.
Presidential spokesperson Bayo Onanuga announced the approval in a statement issued in Abuja on Tuesday.
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The $50 billion figure represents the government’s estimate of investment the framework could unlock rather than capital that has already been committed.
According to the Presidency, the reform is expected to support a new generation of capital-intensive offshore developments, beginning with Shell’s proposed Bonga South West project, estimated to require about $10 billion.
The government said the framework would improve Nigeria’s ability to compete for international capital by providing greater fiscal and regulatory certainty to investors.
The decision followed discussions between Tinubu and Shell plc Chief Executive Officer Wael Sawan on measures required to unlock Nigeria’s deepwater investment pipeline.
Instead of negotiating incentives for the Bonga South West project alone, the government developed a broader framework that will apply to different categories of qualifying offshore developments.
The reform is being implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
According to the Presidency, the order establishes transparent qualification criteria and a consistent process for implementing investment-linked incentives while protecting Nigeria’s long-term economic interests.
The approval also authorises the Nigerian National Petroleum Company Limited, as the Federal Government’s nominated counterparty under production-sharing contracts, to make the necessary amendments to eligible agreements.
Tinubu said countries that successfully attract long-term capital are distinguished not only by their natural resources but also by the certainty they offer investors.
“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,” the President said.
He added that the reform reflected his administration’s commitment to establishing clear rules, strengthening institutions and building durable partnerships with investors.
“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,” Tinubu said.
The President commended the federal ministries of Justice, Finance and Petroleum Resources for their roles in developing the framework.
He also acknowledged the contributions of the Nigeria Revenue Service, NNPC Limited, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Content Development and Monitoring Board, investing companies and other industry stakeholders.
Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said local industrial development would be a major component of the reform.
She explained that qualifying projects would be expected to maximise execution within Nigeria wherever doing so was commercially and technically feasible.
This is expected to support domestic engineering, fabrication, marine logistics, technical services and project-management businesses.
“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,” Arowolo-Verheijen said.
The Bonga South West development is one of Nigeria’s major undeveloped deepwater projects. The government expects the new framework to help move the project and other qualifying developments towards final investment decisions.
The success of the reform will ultimately depend on investor participation, contract implementation, regulatory consistency and whether the targeted projects secure final approvals and financing.
