President Tinubu Approves Framework to Attract $50 Billion Offshore Investment

President Bola Ahmed Tinubu approved the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a new regulatory and fiscal framework designed to attract up to $50 billion in fresh capital for Nigeria's deep offshore oil and gas fields. The reform replaces a system of project-by-project negotiations with a transparent, rules-based architecture to increase investor certainty and global competitiveness.

The initiative follows discussions between the president and Shell plc CEO Wael Sawan. It aims to revive stalled, capital-intensive developments, beginning with Shell's $10 billion Bonga South West project, which targets a final investment decision in 2027. To implement these changes, NNPC Limited is authorized to amend eligible Production Sharing Contracts.

A central objective of the framework is to enhance Nigerian industrial capability. The policy mandates that qualifying projects maximize domestic execution of engineering, fabrication, and marine logistics. This strategy is intended to create skilled jobs, deepen local supply chains, and position Nigeria as Africa's regional hub for deep offshore project execution.