Tinubu approves deep offshore reform targeting $50 billion investment in Nigeria’s oil sector

President Bola Tinubu has approved a landmark deep offshore investment reform aimed at unlocking up to $50 billion in new investment across Nigeria’s offshore oil and gas sector, replacing the long-standing system of project-by-project negotiations with a transparent, rules-based investment framework.

The approval was disclosed in a statement issued on Tuesday by Bayo Onanuga, Special Adviser to the President on Information and Strategy, who said the reform is designed to restart large-scale offshore developments that have remained stalled for decades.

According to the Presidency, the framework is being implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, and is intended to provide investors with greater certainty while safeguarding long-term national value.

The new framework replaces the previous model of negotiating incentives on a project-by-project basis, introducing transparent eligibility criteria, clear implementation processes, and a durable investment architecture for qualifying offshore developments.

What they are saying

The Presidency said the reform establishes a transparent, rules-based investment framework that will support the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project.

• It said the framework is designed to improve Nigeria’s competitiveness in attracting globally mobile investment capital and provide a more predictable environment for long-term offshore investments.
• Olu Arowolo-Verheijen, the President’s Special Adviser on Oil and Gas, said projects that qualify under the framework will prioritise execution within Nigeria wherever commercially and technically feasible, helping to strengthen domestic engineering, fabrication, marine logistics, technical services, and project management.
• “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,” he said.

President Tinubu said the reform reflects the administration’s commitment to building an investment environment anchored on 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,” the President said.

Get up to speed

The approval builds on earlier efforts by the Tinubu administration to revive investment in Nigeria’s deep offshore oil sector.

• In January 2026, the President approved the gazetting of targeted, investment-linked incentives for Shell’s proposed Bonga South-West deep offshore project, a move intended to accelerate fresh capital inflows into the energy sector and support the project’s Final Investment Decision (FID).

At the time, the administration described the project as strategic to boosting crude oil production, employment, and foreign exchange earnings.

However, industry attention remained focused on the specifics of the incentives, which were not publicly disclosed in the weeks that followed.

What you should know

Nigeria’s deep offshore sector has struggled to attract new investment in recent years as many existing offshore fields mature, contributing to declining production and weaker foreign exchange earnings.

Although the Petroleum Industry Act (PIA) was introduced to reset the fiscal and regulatory framework for the oil and gas sector, including deep-water operations, major international oil companies have remained cautious about committing capital to new offshore developments.

• Against that backdrop, the Bonga South-West project has emerged as a critical test case for the Tinubu administration’s ability to translate policy reforms into bankable investment outcomes.

The latest reform also comes weeks after ExxonMobil and its partners committed $1 billion to the Usan Infill Project, an offshore development expected to increase Nigeria’s crude oil production by about 40,000 barrels per day, signalling renewed momentum in offshore investment activity.