President Bola Ahmed Tinubu has approved the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a new framework aimed at attracting up to $50 billion in fresh investment into Nigeria’s deep offshore oil and gas sector.
This was disclosed in a statement by the Special Adviser to the President on Energy, Olu Verheijen, describing the measure as a major step towards unlocking the country’s deep offshore potential.
Verheijen said the new framework replaces years of project-by-project negotiations with clear and transparent rules for qualifying investments.
She added that the policy is the 10th major policy directive targeted at Nigeria’s oil and gas industry under the Tinubu administration, reflecting the President’s focus on reforming a sector central to the nation’s economy.
The first major beneficiary of the order is expected to be the $10 billion Bonga South West project, following extensive engagements between the Federal Government and Shell.
According to Verheijen, the framework goes beyond a single project by establishing a sustainable investment structure for multiple categories of qualifying deep offshore developments.
She said that NNPC Limited has been positioned to implement the necessary amendments to Production Sharing Contracts, PSCs, to facilitate the application of the new order.
She stressed that a key component of the policy, is its emphasis on local content, with qualifying projects expected to maximise execution within Nigeria where feasible.
She added that this would strengthen domestic capacity in engineering, fabrication, marine logistics and project management.
Verheijen said the policy was not only aimed at increasing oil production and attracting capital, but also at creating skilled jobs, deepening local supply chains and positioning Nigeria as a leading African hub for offshore project execution.
She said certainty attracts capital, describing the measure as another indication of the Federal Government’s commitment to creating a more predictable investment environment in the oil and gas industry.
The government expects the framework to provide greater certainty for investors, support the development of Nigeria’s deep offshore resources and increase the sector’s contribution to economic growth.
