Tinubu Approves Tax Incentive To Unlock $50bn Deep Offshore Investment

President Bola Ahmed Tinubu has approved the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a new framework aimed at attracting up to $50 billion in fresh investment into Nigeria’s deep offshore oil and gas sector.

Special Adviser to the President on Energy, Olu Verheijen, disclosed this in a statement, describing the measure as another major step towards unlocking Nigeria’s deep offshore potential.

According to Verheijen, the new framework replaces years of project-by-project negotiations with clear and transparent rules-based criteria for qualifying investments.

She said the policy represents the 10th policy directive targeted at Nigeria’s oil and gas industry under the Tinubu administration, highlighting the President’s focus on reforming a sector that remains central to the country’s economy.

The first major beneficiary of the new order is expected to be the $10 billion Bonga South West project, following extensive engagement between the Federal Government and Shell.

Verheijen said the framework was designed to go beyond a single project by establishing a sustainable investment architecture applicable to multiple categories of qualifying deep offshore developments.

She added that NNPC Limited has been positioned to implement the necessary amendments to Production Sharing Contracts (PSCs) to facilitate the application of the new order.

A key component of the policy, according to Verheijen, is its emphasis on local content.

She said qualifying projects would be expected to maximise execution within Nigeria where feasible, strengthening domestic capabilities in engineering, fabrication, marine logistics and project management.

Verheijen said the policy was therefore not solely about increasing oil production or attracting capital, but also about creating skilled employment, deepening local supply chains and positioning Nigeria as a leading African hub for offshore project execution.

“Certainty attracts capital,” she said, describing the new measure as another signal of the Federal Government’s commitment to creating a more predictable investment environment in Nigeria’s oil and gas industry.

The government expects the framework to provide greater certainty for investors while supporting the development of Nigeria’s deep offshore resources and increasing the sector’s contribution to economic growth.