President Bola Ahmed Tinubu has signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, in a move aimed at attracting up to $50 billion in new investment into Nigeria’s deep offshore oil and gas sector.
The Presidency said the framework is expected to provide clearer and more predictable investment terms for deep offshore projects that have faced delays, with the approximately $10 billion Bonga South West project expected to be among the first major developments to benefit.
Under the new framework, existing deep offshore leases have until December 31, 2029, to reach Final Investment Decision (FID) and qualify for the full standard incentive provided under the Order.
Tinubu said the policy was designed to address the uncertainty that has discouraged long-term investment in Nigeria’s offshore oil and gas industry.
“Capital moves, and countries compete for it every day,” the President said, stressing that countries with the greatest natural resources do not necessarily attract the most investment, but those that provide greater certainty do.
He said the government’s objective was not only to attract foreign capital but also to ensure that Nigerians benefit from the economic activities generated by the projects.
“I want the work that comes with these projects to come home to Nigeria,” Tinubu said.
According to the President, the policy is expected to create opportunities for Nigerian engineers, fabrication yards, marine and technical service companies, while helping young Nigerians acquire skills that can remain valuable beyond the lifespan of individual projects.
The Order also places emphasis on Nigerian content. Projects accessing the supplementary incentives are expected to carry out activities in Nigeria, subject to defined exceptions and applicable Nigerian Content requirements.
The President said the government wants Nigeria to become a regional hub for deep offshore project execution, with greater domestic capacity in engineering, fabrication, logistics and other technical services.
The latest policy is the 10th major directive by the Tinubu administration specifically targeting the oil and gas sector, according to the Presidency. It is part of broader efforts to improve investment, increase production and strengthen value creation within Nigeria’s petroleum industry.
The Bonga South West project, operated by Shell, has been a major focus of the government’s efforts to revive deepwater investment. Earlier this year, the administration introduced investment-linked incentives aimed at encouraging the project to reach FID.
Tinubu said the success of the new framework would ultimately be measured by its impact on Nigerians, including the creation of jobs, stronger local businesses, increased oil production, higher government revenues and the development of new industrial capabilities.
“Our natural resources must work harder for our people,” the President said.
He added that the government would pursue the implementation of the framework with urgency.