Tinubu Unveils New Offshore Investment Framework, Targets $50bn Capital Inflow

President Bola Ahmed Tinubu has approved a new policy framework designed to attract as much as **US$50 billion in fresh investment into Nigeria’s deep offshore oil and gas sector**, in a move aimed at reviving several large-scale projects that have remained undeveloped for years.

The new framework marks a shift from the Federal Government’s previous approach of negotiating incentives separately for individual projects. Instead, investors in qualifying deep offshore developments will operate under a **clear, transparent and rules-based incentive regime** intended to provide greater certainty and improve Nigeria’s attractiveness to international capital.

The reform is expected to facilitate the development of the next generation of deep offshore projects, with the approximately **US$10 billion Bonga South West development** positioned as an early beneficiary.

The policy follows President Tinubu’s discussions with Shell plc Chief Executive Officer, **Wael Sawan**, during which the President called for further measures to stimulate investment in Nigeria’s offshore petroleum industry.

Following that engagement, the Federal Government opted for a broader solution rather than a project-specific arrangement. The resulting framework is designed to cover multiple categories of qualifying offshore developments and establish a more predictable basis for investment decisions.

The policy has been formalised through the **Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026**. The order establishes eligibility requirements and implementation procedures intended to give investors a clearer understanding of the incentives available to qualifying projects.

Under the approved framework, **NNPC Limited**, acting as the Federal Government’s nominated counterparty under Production Sharing Contracts, will undertake the required amendments to eligible PSCs to facilitate implementation.

Beyond attracting capital and increasing oil and gas production, the government says the initiative is also intended to expand the participation of Nigerian companies in offshore project development.

Olu Arowolo-Verheijen, the President’s Special Adviser on Oil and Gas, said qualifying projects would be expected to maximise work carried out in Nigeria whenever commercially and technically feasible.

She said this would create opportunities across areas including **engineering, fabrication, marine logistics, technical services and project management**, while supporting skilled employment and strengthening local supply chains.

The government also expects the policy to enhance Nigeria’s position as a **regional centre for deep offshore project execution in Africa**.

President Tinubu praised the government agencies, industry partners and other stakeholders involved in developing the new framework, including 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.

The President said the reform reflects his administration’s commitment to creating an investment environment based on certainty, transparency and institutional stability.

> “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.”

According to the President, the new framework is intended to create conditions that encourage international capital to enter Nigeria, enable Nigerian businesses to expand and ensure that the country derives greater long-term economic value from its petroleum resources.

The Federal Government believes the reform could mark a significant turning point for Nigeria’s deep offshore industry, providing a more predictable investment environment while supporting increased production, domestic industrial capacity and job creation.