NNPC: Tinubu’s Deep Offshore Incentive to Accelerate Investment, Oil Output

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has lauded the federal government's recent signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. NNPC views this policy intervention as a crucial catalyst for accelerating investment in Nigeria's deepwater oil and gas sector and significantly boosting crude production.

The company asserts that the new fiscal framework will enhance Nigeria's global competitiveness as an investment destination. It is expected to attract substantial long-term capital, thereby supporting the nation's ambitious goal of increasing crude oil output to 3 million barrels per day by 2030. NNPC projects that this framework could unlock more than $50 billion in new investments.

Key deep offshore projects anticipated to benefit include Bonga South-west, Zabazaba, and Owowo. The Bonga South-west project, approved in March 2026, is particularly noteworthy as it represents the first Final Investment Decision (FID) on a Nigerian deepwater Production Sharing Contract (PSC) asset since 2008, highlighting the potential impact of these new fiscal incentives.

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

Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, described the Order as one of the most significant policy interventions in Nigeria's upstream sector in recent years. He stated that it sends a strong signal to global investors about Nigeria's commitment to a stable, competitive, and investment-friendly environment for deep offshore development. Ojulari emphasized that fiscal certainty is a critical driver for investment decisions, and this framework provides the clarity the industry has long sought.

Ojulari further explained that the incentives align directly with NNPC's strategy to protect existing production, accelerate near-term growth, and attract new capital into high-value assets. He noted that recent reforms have already generated over $34 billion in new investment commitments, reinforcing confidence in achieving the strategic production ambition while creating greater value for shareholders and the Nigerian economy.

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For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets. It strengthens our confidence in achieving our strategic production ambition of 3 MMbopd while creating greater value for our shareholders and the Nigerian economy.