Tinubu approves framework to unlock $50bn deep offshore investment

President Bola Tinubu has signed off on a groundbreaking reform aimed at unlocking up to $50 billion in deep offshore investment for Nigeria, bringing new life to stalled capital-intensive offshore projects that have been dormant for years. According to a statement released by presidential spokesperson Bayo Onanuga, the reform introduces a transparent, rules-based investment framework designed to support the next generation of deep offshore developments, starting with the $10 billion Bonga South West project.

This shift in strategy, driven by President Tinubu's discussions with Shell Plc CEO Wael Sawan, eliminates the previous reliance on project-by-project negotiations in favor of a comprehensive investment framework that applies to multiple categories of qualifying developments. The framework, enacted through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order 2026, replaces the previous uncertain negotiation process with clear eligibility criteria, streamlined implementation procedures, and a robust investment structure that offers investors greater certainty while protecting national interests.

The approval allows NNPC Limited, under the Production Sharing Contracts, to make the necessary adjustments to eligible contracts to implement the new regime. President Tinubu praised the collaborative efforts of various ministries, regulatory bodies, and industry stakeholders in shaping the framework, emphasizing that countries that attract long-term investment are distinguished by their commitment to providing clear rules, strong institutions, and enduring partnerships.

Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, highlighted the reform's focus on bolstering Nigeria's industrial capabilities. She noted that qualifying projects will prioritize execution within Nigeria, where feasible, thereby strengthening domestic engineering, fabrication, marine logistics, technical services, and project management.

The ultimate goal is to not only attract more investment and boost production but also to generate skilled jobs, strengthen local supply chains, and establish Nigeria as Africa's regional hub for deep offshore project execution.