Tinubu approves framework to unlock $50bn deep offshore investment

President Bola Tinubu has approved a new investment framework designed to unlock up to $50 billion in deep offshore oil and gas investments and revive major projects that have remained stalled for decades.

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The framework replaces project-by-project negotiations with transparent eligibility criteria and a rules-based investment architecture intended to provide greater certainty for investors and improve Nigeria’s competitiveness in attracting global capital.

According to a statement issued on Tuesday by Bayo Onanuga, the president’s Special Adviser on Information and Strategy, the reform is expected to support the next generation of deep offshore developments, beginning with the approximately $10 billion Bonga Southwest project.

The statement said the decision followed Mr Tinubu’s engagement with Wael Sawan, the chief executive officer of Shell, during which the president directed the development of measures to unlock the next wave of investments in Nigeria’s deep offshore sector.

Rather than pursuing individual solutions for specific projects, the government subsequently developed a broader investment framework applicable to multiple categories of qualifying deep offshore developments.

The framework is being implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, according to the statement.

It said the new arrangement would provide investors with clearer eligibility requirements and implementation procedures while safeguarding Nigeria’s long-term economic interests.

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The approval also allows NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts (PSCs), to proceed with amendments to eligible PSCs required to implement the framework.

Focus on local content

The reform is also expected to strengthen local participation in deep offshore projects by encouraging project execution within Nigeria where commercially and technically feasible.

Olu Arowolo-Verheijen, Mr Tinubu’s special adviser on oil and gas, said the framework would help expand domestic industrial capacity alongside increased investment and oil production.

“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible, strengthening domestic engineering, fabrication, marine logistics, technical services and project management,” she said.

“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.”

The presidency said the framework was developed through an extensive inter-agency process involving fiscal, legal, commercial and regulatory institutions, as well as industry operators.

Institutions involved 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 (NUPRC) and Nigerian Content Development and Monitoring Board.

Mr Tinubu commended the institutions, investing partners and other stakeholders involved in developing the framework.

‘Certainty will attract investment’

Mr Tinubu said countries that attract long-term investment are not necessarily those with the largest natural resource endowments but those capable of providing certainty for investors.

“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,” the president said.

“This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships.”

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He added that the government was creating conditions for increased capital inflows, growth of Nigerian businesses and greater national value from the country’s natural resources.

Nigeria has sought to revive investment in its deep offshore oil and gas sector amid concerns over the high cost and complexity of offshore developments and the competitiveness of its fiscal regime.

The Bonga Southwest project, operated by Shell, is one of the major developments expected to benefit from the new framework.

The presidency said the broader reform was designed not merely to facilitate a single project but to establish a durable investment architecture capable of supporting multiple deep offshore developments and attracting substantial new capital into Nigeria’s oil and gas industry.