Tinubu Approves New Deep Offshore Investment Framework, Targets Up to $50bn for Nigeria’s Oil and Gas Sector
Tinubu Approves New Deep Offshore Investment Framework, Targets Up to $50bn for Nigeria’s Oil and Gas Sector
President Bola Tinubu has approved a new deep offshore oil and gas investment framework aimed at unlocking up to $50 billion in fresh investment, reviving stalled projects and creating jobs in Nigeria.
President Bola Tinubu has approved a landmark new framework designed to transform investment in Nigeria’s deep offshore oil and gas sector, with the Federal Government projecting that the policy could unlock up to $50 billion in fresh investment and revive several major projects that have remained stalled for years.
The new policy marks a significant shift from the previous system, under which oil and gas companies often had to negotiate separate agreements and incentives with the Federal Government on a project-by-project basis.
Under the newly approved arrangement, qualifying investors will instead operate under a clearer and more standardised set of eligibility requirements, rules and implementation procedures.
The Federal Government believes the reform will provide the long-term certainty needed to encourage major international and domestic investors to commit fresh capital to Nigeria's deep offshore sector.
One of the major projects expected to benefit is Shell's proposed Bonga South West deep offshore development, estimated at roughly $10 billion.
The announcement was made on Tuesday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, in a statement titled, “President Tinubu Approves Landmark Deep Offshore Investment Framework to Unlock up to US$50 Billion in New Investment.”
New Framework Replaces Project-by-Project Negotiations
For years, one of the major challenges facing deep offshore oil and gas investment in Nigeria has been the complexity and uncertainty surrounding negotiations.
Major offshore developments require enormous financial commitments, advanced technology and long-term planning. Investors therefore seek confidence that the tax system, contractual environment and regulatory rules governing their projects will remain sufficiently predictable over many years.
Under the previous arrangement, companies could be required to negotiate individual agreements with the Federal Government for separate projects. This process could take considerable time and create uncertainty over the terms that would ultimately apply.
According to the Presidency, the new framework seeks to change that approach.
Rather than pursuing separate solutions for individual projects, the Federal Government has introduced a broader investment structure that can apply across multiple categories of qualifying deep offshore developments.
The framework is being given legal effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
The new order establishes transparent eligibility criteria and clearer implementation processes for qualifying projects.
The objective is to reduce uncertainty, speed up investment decisions and create a more durable framework for companies considering multibillion-dollar offshore projects in Nigeria.
The Presidency said the policy is designed to provide investors with greater certainty while also protecting Nigeria's long-term national interest.
Nigeria Targets Up to $50 Billion in Fresh Investment
A major goal of the new deep offshore investment framework is to unlock substantial new capital for Nigeria's petroleum industry.
The Federal Government estimates that the policy could attract up to $50 billion in new investment into qualifying offshore oil and gas developments.
If achieved, such investment could provide a major boost to Nigeria's energy sector at a time when the country is seeking to increase crude oil and gas production, expand government revenues and attract foreign capital.
Deep offshore projects are among the most capital-intensive developments in the global energy industry.
They can require billions of dollars in financing before production begins. Companies must invest in exploration, drilling, floating production facilities, subsea infrastructure, pipelines, engineering and specialised technology.
Because of these costs, investors often delay projects when fiscal terms are unclear or when they believe the investment environment does not provide enough certainty over the life of a project.
The Tinubu administration hopes the new framework will address some of these concerns by establishing clearer rules that investors can assess before committing capital.
The move could also help Nigeria compete more effectively with other oil and gas-producing countries seeking the same pool of global investment.
Shell's Bonga South West Project Expected to Benefit
Among the most closely watched projects expected to benefit from the policy is Shell's Bonga South West development.
The project is estimated to require about $10 billion in investment and is one of the major deep offshore opportunities that could contribute to Nigeria's future oil production.
The approval of the new framework follows President Tinubu's earlier engagement with Wael Sawan, the Chief Executive Officer of Shell plc.
According to the Presidency, the President had directed relevant authorities to develop measures capable of unlocking the next wave of deep offshore investment in Nigeria.
That directive has now resulted in a comprehensive framework rather than a policy designed for only one company or project.
The government said this broader approach is important because it creates a system that can potentially support multiple qualifying developments.
In practical terms, this means Nigeria is seeking to move away from resolving investment concerns one project at a time and toward a more predictable national policy for the deep offshore sector.
For investors, the success of the framework will depend largely on how consistently the new rules are implemented and whether they provide sufficient confidence for companies to make final investment decisions.
NNPC Limited to Amend Eligible Production Sharing Contracts
The approval also gives NNPC Limited an important role in implementing the new framework.
NNPC Limited serves as the government's nominated counterparty under Production Sharing Contracts, commonly known as PSCs.
Under the approved framework, the national oil company will be able to proceed with the necessary amendments to eligible contracts required to implement the new investment structure.
Production Sharing Contracts are an important part of Nigeria's offshore petroleum industry because they define how the government and investing companies share responsibilities, costs and revenues from oil and gas operations.
Updating eligible contracts will therefore be a key part of translating the policy announcement into actual investments and project activity.
The process will require coordination among government agencies, NNPC Limited, investors and other stakeholders in the petroleum sector.
The administration has stressed that the framework was developed through collaboration involving several government institutions and industry participants.
Tinubu Government Pushes for Investment Certainty
President Tinubu said the reform reflects his administration's determination to create an investment environment built around clear rules, strong institutions and long-term partnerships.
The President emphasised that natural resources alone are not enough to attract long-term capital.
According to him, countries that succeed in attracting major investment are those capable of offering investors confidence and certainty.
Tinubu said the new policy is intended to create conditions that will encourage capital inflows while allowing Nigerian businesses and workers to benefit from the expansion of the industry.
The President said the broader goal is to ensure that Nigeria's natural resources generate lasting national value.
This is particularly important for the oil and gas sector, which remains a major source of export earnings and government revenue for Nigeria.
However, the country faces increasing competition for global energy investment, while investors must also consider changing energy markets, international climate policies and the rising cost of major petroleum developments.
A predictable policy environment could therefore become an increasingly important factor in attracting new capital.
Focus on Nigerian Jobs and Local Content
Another major feature of the new deep offshore investment framework is its emphasis on increasing Nigerian participation in project execution.
Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said qualifying projects will seek to maximise execution within Nigeria wherever this is commercially and technically feasible.
The policy is expected to strengthen local participation in areas such as:
- Engineering
- Fabrication
- Marine logistics
- Technical services
- Project management
- Oil and gas support services
The government believes that attracting new offshore investment should produce benefits beyond crude oil production.
Major projects can create demand for local businesses, skilled workers, engineers, technicians, logistics companies, fabricators and other service providers.
The long-term objective, according to the Presidency, is to deepen Nigeria's industrial capacity and local supply chains.
The government also wants to position Nigeria as a regional hub for deep offshore project execution in Africa.
If more project engineering, fabrication and technical work can be carried out locally, a larger share of the economic value generated by offshore investments could remain within Nigeria.
This could help create skilled jobs and encourage further development of Nigerian companies operating across the energy value chain.
Why Deep Offshore Investment Is Important for Nigeria
Nigeria's mature onshore and shallow-water oil assets face a number of challenges, including ageing infrastructure, security concerns and production disruptions.
Deep offshore developments provide another important opportunity for maintaining and potentially increasing Nigeria's long-term petroleum production.
Offshore fields are generally located far from many of the security challenges associated with onshore operations, although they require far more complex technology and larger initial investments.
Developing these resources can take several years and require long-term confidence from investors.
That makes stable rules and fiscal certainty particularly important.
A company considering a multibillion-dollar deep offshore project will assess not only the size of the resource but also taxes, regulations, contractual terms, infrastructure, government policies and the ability to operate under predictable conditions.
The new framework is intended to make Nigeria more attractive in these areas.
By providing a common structure for qualifying projects, the government hopes to shorten the time spent negotiating individual incentives and reduce uncertainty surrounding major investment decisions.
Government Agencies and Industry Stakeholders Involved
President Tinubu commended the institutions and stakeholders that contributed to the development of the new framework.
These include 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
- Other oil and gas industry stakeholders
The involvement of multiple agencies reflects the complexity of deep offshore investment.
Oil and gas projects are affected by taxation, regulation, contractual obligations, local content requirements and other government policies.
For the framework to achieve its objectives, effective coordination among these institutions will be essential.
Investors will also be watching closely to see how quickly eligible projects can move from policy approval to contract amendments, final investment decisions and actual project development.
What the New Framework Could Mean for Nigeria's Economy
If the framework succeeds in attracting up to $50 billion in new investment, the impact could extend beyond the oil and gas sector.
Major offshore developments could generate significant activity across engineering, construction, shipping, logistics, professional services and technical training.
They could also create new opportunities for Nigerian companies capable of meeting the standards required for large international energy projects.
Increased investment could support higher future production and potentially strengthen government revenue and export earnings.
However, the ultimate economic benefits will depend on the successful implementation of projects, global energy prices, production levels and how effectively Nigeria captures value through taxes, local content and other economic activities.
The government will also need to maintain the policy certainty that the framework is designed to establish.
For investors, the announcement represents an important policy signal.
For Nigeria, the real test will be whether the framework leads to actual final investment decisions and the revival of projects that have remained on hold.
A Major Test for Tinubu's Investment Reform Agenda
The deep offshore investment framework is one of the latest efforts by the Tinubu administration to improve Nigeria's investment environment.
The policy reflects a broader recognition that major investors require more than natural resources before committing billions of dollars to long-term projects.
They also require confidence in government policies and institutions.
President Tinubu's message is that Nigeria intends to provide a more predictable environment for companies willing to make long-term investments.
The proposed revival of major projects, including Shell's Bonga South West development, could become an early test of whether the new framework delivers the confidence the government is seeking to create.
If major projects move forward, the policy could help unlock a new cycle of offshore investment.
If implementation is delayed or uncertainty remains, however, investors may continue to wait.
For now, the approval represents a significant policy shift.
Nigeria has moved from a system focused heavily on separate negotiations toward a common framework intended to provide qualifying deep offshore investors with clearer rules.
The coming months will be crucial in determining whether the reform translates into the billions of dollars in investment projected by the Federal Government.
Frequently Asked Questions About Tinubu's New Deep Offshore Investment Framework
What did President Tinubu approve?
President Bola Tinubu approved a new framework governing qualifying foreign investment in Nigeria's deep offshore oil and gas sector. The framework replaces the previous approach of negotiating separate terms for individual projects.
How much investment is Nigeria targeting?
The Federal Government said the new framework could help unlock up to $50 billion in fresh investment in qualifying deep offshore oil and gas developments.
What is the Deep Offshore Oil and Gas Projects Incentives Order, 2026?
It is the legal instrument giving effect to the new investment framework. It establishes eligibility criteria and implementation processes for qualifying projects.
Which major project could benefit first?
Shell's proposed Bonga South West project, estimated at about $10 billion, is among the major deep offshore developments expected to benefit from the new policy framework.
Why is the new framework important?
The framework is designed to reduce uncertainty by replacing lengthy project-by-project negotiations with clearer and more transparent rules for qualifying investments.
What role will NNPC Limited play?
NNPC Limited, as the government's nominated counterparty under Production Sharing Contracts, will proceed with the necessary amendments to eligible contracts needed to implement the framework.
Will the framework create jobs in Nigeria?
The government expects qualifying projects to increase local participation in engineering, fabrication, marine logistics, technical services and project management, potentially creating skilled jobs and strengthening Nigerian supply chains.
How could this affect Nigeria's oil production?
If the framework successfully attracts investment and stalled projects move forward, it could support future oil and gas production from Nigeria's deep offshore fields.
President Bola Tinubu's approval of the new deep offshore oil and gas investment framework represents a major attempt to revive multibillion-dollar projects and make Nigeria more competitive for long-term energy investment.
By introducing common eligibility rules and reducing reliance on project-by-project negotiations, the Federal Government hopes to provide the certainty needed to unlock as much as $50 billion in fresh capital.
The potential revival of Shell's estimated $10 billion Bonga South West project will be closely watched as an early indicator of the framework's effectiveness.
Beyond attracting investment, the government is also seeking to ensure that new projects generate wider benefits through Nigerian jobs, local engineering, fabrication, logistics and technical services.
The policy's ultimate success will depend on implementation, regulatory consistency and whether investors respond by committing real capital to new offshore developments.
For Nigeria, the stakes are high. If the framework delivers on its promise, it could open a new chapter for the country's deep offshore oil and gas industry and strengthen efforts to turn its natural resources into long-term economic value.
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