Tinubu approves new framework to unlock $50bn deep offshore investment

President Bola Tinubu has signed off on a fresh framework designed to unlock up to $50 billion in deep offshore investment for Nigeria's oil and gas industry. This new system replaces the previous arrangement where companies had to negotiate individual agreements with the Federal Government for each project. According to Special Adviser to the President on Information and Strategy, Bayo Onanuga, the reform aims to streamline the investment process by establishing a uniform set of eligibility criteria and rules, rather than allowing each investor to negotiate separate terms.

The decision follows a meeting between Tinubu and Shell plc's CEO, Wael Sawan, during which the President directed efforts to develop measures to stimulate deep offshore investment. The new framework, implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order 2026, replaces project-by-project negotiations with transparent eligibility criteria and clear implementation processes.

This will provide greater certainty for investors while safeguarding long-term national value. The NNPC Limited, acting as the government's nominated counterparty under Production Sharing Contracts, is tasked with amending eligible contracts to align with the new framework. Tinubu highlighted that the reform prioritizes enhancing Nigeria's industrial capabilities, including areas such as engineering, fabrication, marine logistics, technical services, and project management.

This approach is expected to generate skilled jobs, strengthen local supply chains, and position Nigeria as a regional hub for deep offshore project execution.