Investment in Nigeria’s deep offshore oil and gas sector is set for a major boost after President Bola Tinubu approved a new framework designed to unlock up to $50 billion and revive long-stalled projects.
President Bola Ahmed Tinubu has approved a landmark investment framework aimed at unlocking up to $50 billion in new deep offshore oil and gas investment and reviving major projects that have remained stalled for years.
The reform replaces project-by-project negotiations with a transparent, rules-based framework designed to provide greater certainty for investors while protecting Nigeria’s long-term economic interests.
The framework will initially support major developments including the approximately $10 billion Bonga South West project, while creating a broader investment architecture applicable to qualifying deep offshore projects.
The Presidency said the reform was given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
Under the new framework, investors will have clearer eligibility requirements and implementation procedures, reducing uncertainty associated with negotiating individual incentives for each project.
The policy is expected to strengthen Nigeria’s competitiveness in attracting globally mobile capital at a time when oil-producing countries are competing for investment in increasingly capital-intensive offshore developments. Reuters reported that the framework is intended to revive long-delayed projects and improve the investment environment for Nigeria’s deepwater oil and gas sector.
The Bonga South West project is among the first major developments expected to benefit from the new framework.
The project, operated by Shell and its partners, has been delayed for years. Earlier in 2026, NNPC said a targeted fiscal incentive package approved by President Tinubu was expected to unlock a Final Investment Decision on the Bonga South West Aparo project, with the development estimated to attract about $20 billion in investment.
The latest reform broadens the approach beyond a single project by establishing a framework that can apply to multiple categories of qualifying offshore developments.
The approval also authorises NNPC Limited, as the government’s nominated counterparty under the relevant Production Sharing Contracts, to proceed with amendments required to implement the framework.
A major component of the reform is its emphasis on developing Nigeria’s industrial capacity.
According to the President’s Special Adviser on Energy, Olu Verheijen, qualifying projects will be expected to maximise execution within Nigeria wherever commercially and technically feasible.
The objective is to strengthen domestic engineering, fabrication, marine logistics, technical services and project management while creating skilled employment and expanding local supply chains.
“This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships,” Tinubu said.
The President added that the government was seeking to create conditions that would attract capital, expand opportunities for Nigerian businesses and ensure that the country’s natural resources deliver lasting national value.
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 roles in developing the framework.
He also acknowledged investing partners and other industry stakeholders involved in the process.
The new policy represents a significant shift in Nigeria’s approach to attracting deep offshore investment, moving from individual project negotiations toward a more predictable framework intended to give investors greater clarity while maintaining government oversight.
With Nigeria seeking to increase oil and gas production and attract fresh capital into its upstream sector, the success of the framework will depend on how quickly qualifying projects move from approval to final investment decisions, financing and actual development.
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