LAGOS, Aug 11 – Nigeria has approved a new investment framework for deep offshore oil and gas projects that the government says could unlock up to $50 billion in investment and revive major developments that have remained stalled for years.
The reform replaces project-specific negotiations with a rules-based framework intended to provide investors with greater certainty over eligibility, implementation and fiscal treatment. The first major project expected to benefit is the approximately $10 billion Bonga South West development, while the framework is designed to apply more broadly to qualifying deep offshore projects.
The policy was given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. It follows President Bola Ahmed Tinubu’s engagement with Shell Chief Executive Officer Wael Sawan, during which the president directed officials to develop measures capable of unlocking a new wave of offshore investment.
Rather than developing separate arrangements for individual projects, the government subsequently established a broader investment architecture intended to apply across eligible developments.
The framework also allows NNPC Limited, acting as the government’s designated counterparty under Production Sharing Contracts, to make the necessary amendments to eligible contracts to implement the new incentives.
The government said the reform is intended to improve Nigeria’s competitiveness for international capital while preserving long-term national value from its offshore resources. Deepwater projects typically require substantial upfront investment and long development periods, making fiscal and regulatory certainty a key consideration for international oil companies.
The framework also places emphasis on increasing the participation of Nigerian companies in offshore project execution. Olu Arowolo-Verheijen, the president’s special adviser on oil and gas, said the policy was designed to ensure that more economic activity generated by offshore developments takes place within Nigeria.
“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible, strengthening domestic engineering, fabrication, marine logistics, technical services and project management. The objective is not only to increase investment and production, but also to create skilled jobs, deepen local supply chains and position Nigeria as Africa’s regional hub for deep offshore project execution,” Arowolo-Verheijen said.
The framework was developed through an inter-agency process involving the presidency, fiscal and legal authorities, commercial and regulatory institutions, as well as industry operators. The government said the process was intended to align the investment framework with Nigeria’s broader fiscal, regulatory and local-content objectives.
President Tinubu commended the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum Resources, Nigeria Revenue Service, NNPC Limited, Nigerian Upstream Petroleum Regulatory Commission and Nigerian Content Development and Monitoring Board, alongside industry partners and other stakeholders involved in developing the framework.
“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. “This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships. We are creating the conditions for capital to flow, for Nigerian businesses to grow, for our people to prosper and for our natural resources to deliver lasting national value.”
The policy comes as Nigeria seeks to reverse years of underinvestment in its upstream petroleum sector and accelerate development of large offshore resources. The scale of the proposed investment pipeline could also have wider implications for domestic oil and gas production, engineering services, employment and government revenues if qualifying projects move into development.
For Nigeria, the effectiveness of the framework will ultimately depend on how consistently the new rules are implemented and whether they provide sufficient certainty for international operators to commit the capital required for complex deepwater projects. The proposed Bonga South West development is expected to provide an early test of whether the new investment architecture can translate policy reform into large-scale offshore investment.
