Tinubu Approves Landmark Framework to Unlock $50bn Deep Offshore Investments

President Bola Tinubu has approved a new investment framework governing foreign participation in Nigeria’s deep offshore oil and gas fields, aimed at unlocking up to $50 billion in new capital and reviving stalled multi-billion-dollar energy projects.

Under the newly instituted Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, the reform replaces slow, project-by-project negotiations with a standardized, rules-based architecture. The standardized approach provides transparent eligibility criteria and implementation processes, ending decades of unpredictable terms that delayed major deepwater ventures. Among the primary beneficiaries is Shell’s long-delayed $10 billion Bonga South West project.

The initiative follows discussions between President Tinubu and Shell Chief Executive Officer Wael Sawan to establish measures for unlocking offshore energy potential. The approval also empowers NNPC Limited to amend eligible Production Sharing Contracts to integrate the new incentive structure.

Highlighting the domestic economic impact, qualifying projects will mandate maximum local execution. This requirement aims to boost Nigerian engineering, fabrication, marine logistics, and project management while positioning the nation as Africa’s primary offshore execution hub.

The reform reflects a strategy to attract long-term capital by providing regulatory certainty, strong institutions, and an enabling environment for local businesses and natural resource development.