Tinubu's new deep offshore tax incentives aim to unlock $50 billion investment for Nigeria

Nigeria's President Bola Tinubu has approved a new fiscal incentive, the Deep Offshore Oil and Gas Tax Credit Order, 2026, designed to attract significant investment into the nation's deep offshore oil and gas sector.

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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 policy aims to make previously stalled offshore projects commercially viable by providing investors with tax incentives and greater certainty over fiscal terms. President Tinubu stated the order is expected to unlock up to $50 billion in deep offshore investment, beginning with the approximately $10 billion Bonga South West project. "We cannot afford to leave that opportunity beneath our waters for another decade," he said, emphasizing the need for certainty as capital moves globally.

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We cannot afford to leave that opportunity beneath our waters for another decade.

This initiative marks the tenth major policy directive from the Tinubu administration targeting the oil and gas sector. The government aims not only to attract capital but also to generate jobs, strengthen Nigerian businesses, and build local technical capacity. "Our natural resources must work harder for our people. Nigeria First," the president declared.

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We are providing that certainty, with a clear window for existing deep offshore leases to reach Final Investment Decision by 31 December 2029 and qualify for the full standard incentive.

The new incentive follows Shell Plc's signal of renewed investment in Nigeria, citing improved political stability and policy consistency. Shell's CEO Wael Sawan had previously indicated plans to invest around $20 billion in the Bonga Southwest project if a Final Investment Decision is reached. The policy was announced shortly after 31 companies emerged from a bidding process.

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Our natural resources must work harder for our people. Nigeria First.