Tinubu Okays Fresh Deep Offshore Framework to Unlock $50bn Investment
• Order grants $3-$4.50/bbl standard tax credit, plus $1/bbl for future leases •Incentives available to greenfield projects reaching FID by 2029 •Tax credits aimed at accelerating investments in oil sector
President Bola Tinubu has approved a new framework designed to attract up to $50 billion in deep offshore oil and gas investment. The reform replaces project-by-project negotiations with a transparent, rules-based approach aimed at accelerating investments in Nigeria's offshore sector. The Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, established under this framework, grants a standard tax credit between $3 and $4.50 per barrel, with an additional $1 per barrel for future leases.
This incentive is available to greenfield projects that reach the Final Investment Decision (FID) by 2029. The reform is intended to accelerate investments in Nigeria's deep offshore sector, create skilled jobs, and position Nigeria as Africa's regional hub for deep offshore project execution.
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