By Augustine Ehikioya
President Bola Tinubu, has approved a landmark reform to replace project-by-project negotiations with a transparent investment framework designed to unlock up to US$50 billion in new deep offshore investment and restart Nigeria’s large, capital-intensive offshore developments stalled for decades.
The reform establishes a transparent, rules-based investment framework capable of supporting the next generation of deep offshore developments.
It begins with the approximately US$10 billion Bonga South West project, while strengthening Nigeria’s competitiveness for globally mobile investment capital.
The decision followed President Tinubu’s engagement with Shell plc CEO, Mr Wael Sawan, during which the President directed the development of measures to unlock Nigeria’s deep offshore investment pipeline.
Rather than project-specific solutions, the Federal Government transformed that directive into a comprehensive framework applicable across multiple categories of qualifying developments.
Given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, the framework replaces ad-hoc negotiations with: Transparent eligibility criteria, clear implementation processes, durable investment architecture to provide greater certainty for investors while safeguarding long-term national value.
The approval, according to a statement by the Special Adviser on Information and Strategy, Bayo Ononuga, also enables NNPC Limited, as Government’s nominated counterparty under Production Sharing Contracts, to proceed with necessary amendments to eligible PSCs to implement the framework.
A defining feature is its emphasis on Nigerian industrial capability, according to 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.”
President Tinubu commended the Federal Ministries of Justice, Finance, and Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, NUPRC, NCDMB, investing partners and other stakeholders for their collaboration.
He 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. 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.”
