Nigeria approves $50 billion deep offshore investment framework

President Bola Tinubu has greenlit a new investment framework designed to unlock an estimated $50 billion in deep offshore oil and gas ventures, aiming to revitalize projects stalled for decades. This strategic move replaces the previous project-by-project negotiation model with a transparent, rules-based system intended to offer greater certainty for investors and enhance Nigeria's appeal to global capital.

The reform is poised to catalyze the next phase of deep offshore developments, starting with the significant Bonga Southwest project, valued at approximately $10 billion. This decision stems from President Tinubu's discussions with Wael Sawan, CEO of Shell, during which the president urged the development of measures to spur new investments in Nigeria's deep offshore sector. The government's approach shifted from addressing individual project needs to creating a comprehensive framework applicable to various qualifying deep offshore developments, implemented via the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.

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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.

Beyond attracting foreign investment, the framework prioritizes strengthening local participation. Projects qualifying under the new system will maximize execution within Nigeria whenever commercially and technically feasible. This focus aims to bolster domestic engineering, fabrication, marine logistics, technical services, and project management capabilities. Olu Arowolo-Verheijen, special adviser on oil and gas to President Tinubu, stated that the objective extends beyond increasing investment and production; it includes creating skilled jobs, deepening local supply chains, and establishing Nigeria as Africa's regional center for deep offshore project execution.

The framework was developed through a rigorous inter-agency collaboration involving key fiscal, legal, commercial, and regulatory bodies, as well as industry operators. Institutions such as the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum Resources, Nigeria Revenue Service, NNPC Limited, and the Nigerian Upstream Petroleum Regulatory Commission were integral to its creation. This comprehensive approach ensures that the new arrangement provides clear eligibility requirements and implementation procedures while safeguarding Nigeria's long-term economic interests.

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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.