Tinubu approves new framework to unlock $50bn deep offshore investment

President Bola Tinubu has approved a new framework designed to significantly boost foreign investment in Nigeria's deep offshore oil and gas sector. This reform replaces the previous system of negotiating individual agreements with the Federal Government, a process that had historically led to delays and stalled projects for decades.

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Rather than pursuing project-specific solutions, the Federal Government transformed that directive into a comprehensive investment framework applicable across multiple categories of qualifying developments.

The new framework is projected to attract as much as $50 billion in fresh investment and is expected to kickstart major offshore projects, including Shell's approximately $10 billion Bonga South West project. Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated that the reform provides qualifying companies with a common set of eligibility criteria and transparent rules, offering greater certainty for investors while protecting national value.

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Given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, the framework replaces project-by-project negotiations with transparent eligibility criteria, clear implementation processes and a durable investment architecture designed to provide greater certainty for investors while safeguarding long-term national value.

This initiative stems from President Tinubu's earlier discussions with Shell plc CEO Wael Sawan, where the President directed the development of measures to unlock Nigeria's deep offshore investment potential. The framework, enacted through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, streamlines processes and establishes a durable investment architecture.

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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.

A key feature of the reform, according to Special Adviser on Oil and Gas Olu Arowolo-Verheijen, is its emphasis on strengthening Nigerian industrial capability. Projects under the framework will prioritize execution within Nigeria where commercially and technically feasible, thereby boosting domestic engineering, fabrication, marine logistics, and project management. The ultimate goal is not only to increase investment and production but also to create skilled jobs, deepen local supply chains, and establish Nigeria as Africa's regional center for deep offshore project execution.

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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.