President Bola Ahmed Tinubu has signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a new framework the Federal Government says could unlock up to $50 billion in investment and revive major offshore oil and gas projects that have remained stalled.
Bonga South West to Lead New Investment Wave
The new framework is expected to begin with the approximately $10 billion Bonga South West project, while providing clearer and more predictable terms for investors seeking to develop Nigeria’s deep offshore resources.
The Presidency said the order replaces project-by-project negotiations with transparent eligibility criteria and defined implementation processes designed to provide greater certainty for investors.
Tinubu, in a statement explaining the decision, said Nigeria could no longer afford to leave its offshore resources undeveloped.
“For many years, Nigeria has possessed some of the most promising deep offshore oil and gas resources in the world, yet several major developments have remained stalled,” the President said
He added, “We cannot afford to leave that opportunity beneath our waters for another decade.”
Existing Leases Get 2029 Deadline
Under the framework, existing deep offshore leases will have until December 31, 2029, to reach Final Investment Decision and qualify for the full standard incentive provided under the order.
The President said the policy was designed to give investors the certainty required to commit large sums of money to projects that often take several years to develop.
“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.
According to the Presidency, the reform is intended to strengthen Nigeria’s competitiveness in the global market for long-term investment capital.
Tinubu Targets Jobs, Local Businesses
Beyond attracting foreign investment, the President said his administration wants the economic benefits of the projects to be felt by Nigerian businesses and workers.
Tinubu said the government would prioritise the participation of Nigerian engineers, fabrication yards, marine and technical service companies and young people who can acquire skills through the projects.
“But attracting investment is only half of my purpose,” he said.
“I want the work that comes with these projects to come home to Nigeria. I want our engineers involved, our fabrication yards working, our marine and technical service companies securing contracts, and our young people acquiring skills that will remain valuable long after the first barrel is produced.”
Government Targets Deep Offshore Hub
The new framework also places emphasis on increasing local execution of qualifying projects.
The Presidency said projects accessing supplementary incentives are expected to undertake activities in Nigeria, subject to defined exceptions and Nigerian Content requirements. The policy is aimed at strengthening domestic engineering, fabrication, marine logistics, technical services and project management.
Tinubu said his ambition was to transform Nigeria into a major centre for deep offshore project execution on the African continent.
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“My ambition is that we use this new investment cycle to build Nigeria into Africa’s regional hub for deep offshore project execution,” he said.
“We should not only possess the resources. We should increasingly possess the skills, businesses and industrial capacity required to develop them.”
Policy Follows Tinubu-Shell Engagement
The President said the framework followed his engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which he directed his administration to develop a solution that would address broader investment challenges rather than focus on a single company or project.
The Presidency said the government subsequently developed a comprehensive framework applicable to multiple categories of qualifying deep offshore developments.
Tinubu said, “We needed a framework that could unlock a wider pipeline of investment while protecting Nigeria’s long-term interests.”
“That framework is now in place,” he added.
Tenth Major Oil and Gas Policy Directive
Tinubu described the order as the 10th major policy directive of his administration specifically targeted at Nigeria’s oil and gas industry.
According to him, the various measures are aimed at removing constraints to investment, increasing production and improving value creation within the sector.
The President said the success of the new framework would ultimately be judged by its impact on Nigerians.
“I will judge its success by what Nigerians see from it in terms of good jobs, stronger Nigerian businesses, greater production, increased revenues for the Federation and new capabilities built here at home,” he said.
‘Our Natural Resources Must Work Harder’
Tinubu said the ultimate objective of the policy was to ensure that Nigeria’s natural resources generate greater economic value for its citizens.
“Our natural resources must work harder for our people,” the President said.
“That is the purpose of this decision, and we will pursue it with urgency.”
The Federal Government said the framework is expected to strengthen investment, production and domestic industrial capacity while helping Nigeria compete more effectively for long-term capital in the global oil and gas industry.
