By: Tijani Salako.

President Bola Ahmed Tinubu has approved a landmark reform aimed at unlocking up to $50 billion in new deep offshore oil and gas investment and restarting major offshore developments that have remained stalled for decades.

This was disclosed in a statement signed by the President and obtained by the Standard Times Newspaper through the official handle of the President, emphasising the need to unlock Nigeria’s deep offshore potential and provide clear and predictable terms capable of attracting long-term investment into the sector.

The reform, given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, establishes a transparent, rules-based investment framework designed to replace project-by-project negotiations and strengthen Nigeria’s competitiveness for globally mobile investment capital.

According to Tinubu, the framework has the potential to unlock up to $50 billion in investment, beginning with the approximately $10 billion Bonga South West project.

“For existing deep offshore leases, there is a clear window to reach Final Investment Decision by 31 December 2029 and receive the full standard incentive available under the Order,” he said.

The President said Nigeria could no longer afford to leave its deep offshore resources undeveloped, noting that the country had engineers, businesses and young people capable of undertaking increasingly sophisticated activities in the oil and gas industry.

He stressed that the major constraint had been the certainty required for investors to commit billions of dollars over many years and at the scale needed to translate the country’s resources into production, jobs and economic opportunities.

Tinubu said the order marked the tenth major policy directive of his administration targeted specifically at the oil and gas sector, adding that the measures were designed to address constraints affecting investment, production and value creation.

He said the government’s objective was not only to attract investment but also to ensure that the economic activities and opportunities arising from the projects were domiciled in Nigeria.

“I want the work that comes with these projects to come home to Nigeria. I want our engineers involved, our fabrication yards working, our marine and technical service companies securing contracts, and our young people acquiring skills that will remain valuable long after the first barrel is produced,” he said.

The President added that projects accessing the supplementary incentives under the order would be required to perform activities in Nigeria, subject to clearly defined exceptions and Nigerian Content requirements.

Tinubu said his administration intended to use the new investment cycle to position Nigeria as Africa’s regional hub for deep offshore project execution by developing the skills, businesses and industrial capacity needed to support the sector.

He said the framework followed his engagement with the Chief Executive Officer of Shell Plc, Mr Wael Sawan, during which he directed his team to look beyond solutions for individual companies or projects and develop a broader framework capable of unlocking a wider pipeline of investment while protecting Nigeria’s long-term interests.

“That framework is now in place,” the President said.

He said the success of the initiative would ultimately be measured by the benefits Nigerians derive from it, including good jobs, stronger Nigerian businesses, increased production, higher revenues for the Federation and new capabilities built locally.

The President said the reform would also enable NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts, to proceed with necessary amendments to eligible contracts required to implement the framework.

Tinubu expressed appreciation to the Federal Ministries of Justice, Finance and Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, investing partners and other industry stakeholders for their contributions to the development of the framework.

“Our natural resources must work harder for our people,” the President said, adding that the government would pursue the implementation of the decision with urgency.