Tinubu approves deep offshore reform targeting $50 billion investment in Nigeria’s oil sector

President Bola Tinubu has signed off on a groundbreaking reform aimed at deepening offshore investments in Nigeria's oil and gas sector, with the potential to attract up to $50 billion in fresh capital. The new investment framework, unveiled on Tuesday by Special Adviser to the President Bayo Onanuga, replaces the antiquated system of project-by-project negotiations with a transparent, rules-based approach.

This overhaul is set to revive stalled offshore developments that have been delayed for decades, ushering in a new era of certainty for investors. The Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, will provide investors with clear eligibility criteria, streamlined processes, and a robust investment structure for qualifying projects.

The reform is set to kickstart the ambitious $10 billion Bonga South West project, signaling a renewed commitment from the administration to build an investment climate founded on clarity, strong institutions, and enduring partnerships. The decision to reform the deep offshore sector follows earlier initiatives by the Tinubu government to spur investment, with the administration touting the project's strategic importance in boosting crude oil output, job creation, and foreign exchange earnings.

Despite the administration's efforts, international oil companies have remained hesitant to invest in the deep offshore due to unclear incentives and concerns over the long-term value of their investments. The latest reform follows the announcement of a $1 billion commitment from ExxonMobil and its partners to the Usan Infill Project, an offshore development expected to boost Nigeria's crude oil output by approximately 40,000 barrels per day, signaling a resurgence in offshore investment activity.