Presidency approves new  investment framework for deep offshore 

By Philippine Duru

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

The Presidency said the landmark reform is designed to replace the previous system of project-by-project negotiations with a transparent, rules-based investment framework that provides greater certainty for investors while protecting Nigeria’s long-term economic interests.

According to a statement issued on Tuesday by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the reform will support the development of the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project.

The initiative is expected to strengthen Nigeria’s competitiveness in attracting globally mobile investment capital and help restart large-scale offshore developments that require significant long-term capital commitments.

The framework has been given legal effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.

Under the new arrangement, eligible projects will be assessed against clearly defined criteria and implemented through a more predictable investment architecture, eliminating the need for prolonged negotiations on individual projects.

The Presidency said the reform 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 country’s deep offshore investment pipeline.

Rather than limiting the response to a solution for a single project, the Federal Government said it developed a broader framework that would apply to multiple categories of qualifying deep offshore developments.

The approval also authorises NNPC Limited, as the government’s nominated counterparty under the Production Sharing Contracts, to proceed with the necessary amendments to eligible contracts to give effect to the new framework.

A key component of the reform is the emphasis on increasing Nigerian participation in the execution of deep offshore projects.

Olu Arowolo-Verheijen, Special Adviser to the President on Oil and Gas, said qualifying projects would be required to maximise execution within Nigeria wherever commercially and technically feasible.

She said the policy would create opportunities for Nigerian companies involved in engineering, fabrication, marine logistics, technical services and project management.

“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,” Arowolo-Verheijen said.

She added that the objective was not only to increase investment and oil production but also to create skilled employment, deepen domestic supply chains and position Nigeria as a regional hub for deep offshore project execution.

The Presidency said the framework was developed following an extensive inter-agency process involving fiscal, legal, commercial and regulatory institutions, as well as major industry operators and other stakeholders.

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 and Nigerian Content Development and Monitoring Board for their contributions to the process.

He also acknowledged the role of investing partners and other industry stakeholders whose technical expertise and collaboration contributed to the development of the framework.

President Tinubu said the reform was aimed at creating an investment environment capable of attracting long-term capital by providing clear rules and stronger institutional 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,” the President said.

He added that the reform demonstrated his administration’s determination to establish an investment environment built around 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,” Tinubu said.

The Federal Government expects the new framework to help revive Nigeria’s deep offshore investment pipeline, boost future oil and gas production, expand local industrial capacity and generate significant economic opportunities as the country seeks to attract billions of dollars in new capital to its energy sector.