Tinubu approves offshore reform to unlock $50 billion investment

President Bola Tinubu has approved a significant reform designed to unlock an estimated $50 billion in deep offshore investment and revitalize stalled projects within Nigeria's oil and gas sector. This initiative replaces the previous method of project-by-project negotiations with a transparent, rules-based investment framework.

The new framework aims to attract long-term capital and enhance Nigeria's competitiveness in securing globally mobile investment funds. It is expected to support new deep offshore developments, starting with the approximately $10 billion Bonga South West project. The decision follows President Tinubu's discussions with Shell plc Chief Executive Officer Wael Sawan regarding measures to boost investment in the sector.

Instead of project-specific solutions, the Federal Government has established a comprehensive framework applicable to multiple qualifying developments. This framework, formalized through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, introduces clear eligibility criteria and implementation processes. It aims to provide greater certainty for investors while protecting national value.

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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. This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships. We are creating the conditions for capital to flow, for Nigerian businesses to grow, for our people to prosper and for our natural resources to deliver lasting national value.

President Tinubu highlighted that attracting long-term investment depends on providing certainty through clear rules and strong institutions. "We are creating the conditions for capital to flow, for Nigerian businesses to grow, for our people to prosper and for our natural resources to deliver lasting national value," he stated.

Special Adviser to the President on Energy, Olu Verheijen, emphasized that the reform prioritizes strengthening Nigerian industrial capacity. Projects under this framework will maximize execution within Nigeria where commercially and technically feasible. The goal is not only to increase investment and production but also to create skilled jobs, deepen local supply chains, and position Nigeria as Africa's hub for deep offshore project execution.

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Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible. 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.