Tinubu Approves Framework to Unlock $50bn Deep Offshore Investment

By Nafiu Muhammad Lema

President Bola Ahmed Tinubu has approved a new investment framework aimed at unlocking up to $50 billion in fresh investment in Nigeria’s deep offshore oil and gas sector.

The reform, which replaces project-by-project negotiations with a transparent and rules-based investment framework, is designed to revive major offshore developments that have remained stalled for years.

According to a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, on Tuesday, the framework will support the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project.

The initiative is being implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which establishes clear eligibility criteria, implementation processes and a long-term investment structure intended to provide greater certainty for investors while protecting Nigeria’s national interests.

The approval also authorises NNPC Limited, the government’s nominated counterparty under the Production Sharing Contracts, to proceed with amendments to eligible contracts required to implement the new framework.

Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said the reform would place strong emphasis on strengthening Nigerian industrial capacity.

She said qualifying projects would maximise execution within Nigeria wherever commercially and technically feasible, with the aim of boosting domestic engineering, fabrication, marine logistics, technical services and project management.

According to her, the initiative is expected to increase investment and production while creating skilled employment, deepening local supply chains and positioning Nigeria as a regional hub for deep offshore project execution.

The reform followed President Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which the President directed the development of measures to unlock the next wave of deep offshore investments in Nigeria.

Rather than adopting project-specific solutions, the Federal Government subsequently developed a broader framework applicable to multiple categories of qualifying developments following an extensive inter-agency process involving fiscal, legal, commercial and regulatory institutions as well as industry operators.

President 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, Nigerian Content Development and Monitoring Board, investing partners and other industry stakeholders for their contributions to the initiative.

The President said countries that attract long-term investment are not necessarily those with the largest natural resources, but those that provide the greatest certainty for investors.

He said the reform demonstrates his administration’s commitment to creating an investment environment based on 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,” Tinubu said.