Tinubu approves $50bn deep offshore investment framework to revive stalled projects

By Egena Sunday Ode

President Bola Ahmed Tinubu has approved a new rules-based investment framework for Nigeria’s deep offshore oil and gas sector, a reform the government says will unlock up to US$50 billion in new investment and restart major projects stalled for decades.
The decision, announced in a State House press release on Monday replaces decades of project-by-project negotiations with transparent eligibility criteria and clear implementation processes.
The framework is given legal effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
According to the Presidency, the reform is designed to support the next generation of deep offshore developments, beginning with the approximately US$10 billion Bonga South West project.
The framework also strengthens Nigeria’s competitiveness for globally mobile capital, the statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said.
The move follows President Tinubu’s engagement with Shell plc CEO, Mr. Wael Sawan. The President had directed the development of new measures to unlock the deep offshore investment pipeline. Rather than pursue individual deals, the government converted that directive into a sector-wide framework applicable to multiple categories of qualifying developments.
A key part of the approval enables NNPC Limited, as government counterparty under Production Sharing Contracts, to proceed with amendments to eligible PSCs required to implement the framework.
The government said the new architecture provides greater certainty for investors while safeguarding long-term national value.
A defining feature, according to the President’s Special Adviser on Oil and Gas, Olu Arowolo-Verheijen, is the emphasis on Nigerian industrial capability.
“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible,” she said. “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.”
The areas targeted include engineering, fabrication, marine logistics, technical services and project management.
President Tinubu commended the Federal Ministries of Justice, Finance, and Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, NUPRC, NCDMB, investing partners and other stakeholders for their collaboration.
In his remarks, the President said:
“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. This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships.”