Tinubu Okays Deep Offshore Framework to Unlock $50bn Investment

President Bola Ahmed Tinubu has approved a new investment framework aimed at attracting up to $50 billion into Nigeria’s deep offshore oil and gas sector and reviving major projects that have remained stalled for decades.

The reform replaces project-by-project negotiations with transparent eligibility requirements, defined implementation procedures and a rules-based structure for qualifying deep offshore developments, according to a statement on Tuesday.

The approximately $10 billion Bonga South West project is expected to be among the first major developments supported by the framework.

The Presidency said the initiative would improve Nigeria’s competitiveness in attracting globally mobile capital while providing investors with greater regulatory and fiscal certainty. It is also intended to protect the country’s long-term economic interests.

The framework will be implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.

Under the approval, the Nigerian National Petroleum Company Limited, as the Federal Government’s nominated counterparty under existing Production Sharing Contracts, can proceed with amendments to eligible contracts required to implement the new measures.

The reform followed Tinubu’s discussions with Shell plc Chief Executive Officer Wael Sawan. After the engagement, the President directed government officials to develop measures capable of unlocking Nigeria’s pipeline of deep offshore investments.

Rather than introduce a solution for an individual project, the government developed a broader framework that can apply to multiple categories of qualifying developments.

A major component of the initiative is the expansion of Nigerian participation in offshore project execution. Qualifying projects will be expected to maximise work carried out in Nigeria wherever doing so is commercially and technically feasible.

The government said this would strengthen domestic engineering, fabrication, marine logistics, technical services and project-management capacity. It is also expected to create skilled employment, deepen local supply chains and support Nigeria’s ambition to become Africa’s hub for deep offshore project execution.

The framework was developed through an inter-agency process led by the Presidency, with input from fiscal, legal, commercial and regulatory institutions as well as investors and other industry stakeholders.

Tinubu commended the federal ministries of Justice, Finance and Petroleum Resources, alongside the Nigeria Revenue Service, NNPC Limited, Nigerian Upstream Petroleum Regulatory Commission and Nigerian Content Development and Monitoring Board for their roles in shaping the policy.

The President said clear rules and strong institutions were essential to attracting sustainable investment.

“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,” Tinubu said.

“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.”