…Bonga South West, other stalled projects to benefit from rules-based incentives

President Bola Tinubu has approved a new investment framework for Nigeria’s deep offshore oil and gas sector, with the potential to unlock up to $50 billion in fresh investment and revive major projects that have remained stalled for years.

 

The reform, which replaces project-by-project negotiations with a transparent and rules-based incentive regime, is designed to improve Nigeria’s competitiveness in attracting long-term capital into large-scale offshore developments.

 

The Presidency, on Tuesday, explained that the framework will initially support the approximately $10 billion Bonga South West project, while providing an investment architecture applicable to other qualifying deep offshore developments.

 

The Presidency said the initiative followed President Tinubu’s engagement with Shell Plc Chief Executive Officer, Wael Sawan, during which the President directed the development of measures to unlock the next wave of investment in Nigeria’s deep offshore sector.

 

Rather than adopting project-specific solutions, the Federal Government subsequently developed a broader framework with defined eligibility criteria, implementation procedures and incentives applicable across qualifying projects.

 

The reform has been given effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which the government said would provide greater certainty to investors while protecting Nigeria’s long-term economic interests.

 

Under the new arrangement, NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts (PSCs), is authorised to proceed with amendments to eligible PSCs required to implement the framework.

 

Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said the initiative was also designed to strengthen local industrial capacity and ensure that a significant proportion of project execution takes place in Nigeria where commercially and technically feasible.

 

She said qualifying projects would support the expansion of domestic engineering, fabrication, marine logistics, technical services and project management capabilities.

 

“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,” Arowolo-Verheijen said.

 

President Tinubu commended the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum Resources, Nigeria Revenue Service, NNPC Limited, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Content Development and Monitoring Board, investing partners and other industry stakeholders for their contributions to the development of the framework.

 

According to the President, the reform is intended to address one of the critical considerations influencing global investment decisions — certainty.

 

“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,” Tinubu said.

 

He added: “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.”