Deep offshore incentive order will accelerate investment, production growth, NNPC

Nigeria's President Bola Tinubu has approved a new Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a move the Nigerian National Petroleum Company Limited (NNPC Ltd) hailed as a landmark reform designed to attract significant investment.

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I have signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, creating a clear and predictable framework capable of unlocking up to $50 billion in deep offshore investment, beginning with the approximately $10 billion Bonga South West project.

The government's decision establishes a transparent, predictable, and globally competitive fiscal framework for qualifying deep offshore developments. NNPC stated that this framework will provide the necessary certainty to unlock long-term capital, accelerate Final Investment Decisions (FIDs), and maximize the value derived from Nigeria's offshore resources. The initiative is expected to bolster Nigeria's goal of increasing crude oil production to 3 million barrels per day by 2030.

President Tinubu announced that the new incentive framework could attract up to $50 billion in deep offshore investments, with the approximately $10 billion Bonga South West project serving as an initial catalyst. This policy aims to make previously stalled offshore projects commercially viable by offering investors tax incentives and greater fiscal certainty. NNPC anticipates that these investments will reinforce Nigeria's standing as an attractive destination for deep offshore oil and gas development, potentially including major projects like Zabazaba and Owowo Deep Offshore.

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This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development.

Bashir Ojulari, Group Chief Executive Officer of NNPC Ltd., described the order as a transformative reform and one of the most significant policy interventions in Nigeria's upstream sector recently. He emphasized that the framework sends a strong signal to global investors about Nigeria's commitment to a stable and investment-friendly environment for deep offshore development. Ojulari highlighted that fiscal certainty is a critical driver for investment decisions, and this new framework provides the clarity the industry has long sought, aligning with NNPC's strategy to protect existing production, accelerate growth, and attract new investments.

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Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought.