President Bola Tinubu has approved a new regulatory and fiscal framework aimed at attracting up to $50 billion in investment into Nigeria’s deep offshore oil and gas sector.
The new framework, known as the Deep Offshore Oil and Gas Projects Incentives, is designed to provide greater certainty for investors and revive major offshore projects that have faced delays due to regulatory uncertainty, high development costs and competition from other oil-producing countries.
Presidential spokesman Bayo Onanuga said the framework replaces project-by-project negotiations with a rules-based system backed by a new tax remission order.
According to the government, the initiative is expected to improve Nigeria’s competitiveness for international capital while creating a more predictable investment environment for offshore oil and gas developments.
TINUBU
One of the first major projects expected to benefit from the new framework is Shell’s long-delayed $10 billion Bonga South West development, which is projected to reach a final investment decision in 2027.
The approval also gives NNPC Ltd the authority to amend eligible production-sharing contracts with participating producers under the new framework.
The government said qualifying projects would also be required to prioritise local execution where feasible, a move expected to create employment opportunities and strengthen domestic supply chains in the oil and gas industry.
The Tinubu administration has been seeking to restore investment into Nigeria’s upstream petroleum sector after years of declining capital inflows and delays in major oil projects.
The new policy is therefore expected to support fresh offshore developments, increase oil production and strengthen government revenues while positioning Nigeria to attract long-term investment into its energy sector.
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