President Bola Ahmed Tinubu has signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, in a move aimed at unlocking up to $50 billion in new investments in Nigeria’s deep offshore oil and gas industry.
The President said the measure was designed to provide investors with greater certainty and predictable fiscal terms needed to commit large-scale capital to deep offshore projects.
According to him, the framework could help drive investment beginning with the approximately $10 billion Bonga South West project.
Under the new order, existing deep offshore lease holders will have until December 31, 2029, to reach Final Investment Decision and qualify for the full standard incentive provided under the framework.
Tinubu said Nigeria could no longer afford to allow its deep offshore resources to remain undeveloped while other oil-producing countries compete aggressively for global investment.
He noted that countries with abundant natural resources do not automatically attract capital, stressing that investors are more likely to commit to jurisdictions that offer stability, clarity and long-term policy certainty.
The President described the order as the 10th major policy directive of his administration specifically targeted at addressing challenges in the oil and gas sector.
He said the measures introduced so far were part of a broader strategy to increase investment, raise production, improve the competitiveness of Nigeria’s petroleum industry and ensure that a greater share of the value generated from the country’s natural resources remains within Nigeria.
Tinubu, however, stressed that attracting foreign investment was only one aspect of the government’s objective.
He said the administration would ensure that Nigerian engineers, fabrication yards, marine operators and technical service providers benefit significantly from the projects, while young Nigerians acquire skills that can support the industry over the long term.
The President said projects benefiting from the supplementary incentives under the order would be required to carry out activities within Nigeria, subject to specified exceptions and Nigerian Content obligations.
He added that the government’s broader ambition was to position Nigeria as Africa’s leading hub for deep offshore project execution by developing not only its petroleum resources but also the expertise, businesses and industrial infrastructure required to support the sector.
Tinubu said his engagement with Shell Plc Chief Executive Officer, Wael Sawan, led the administration to pursue a framework that would go beyond addressing the needs of a single company or project and instead create conditions capable of supporting a wider pipeline of investments.
He said the success of the new policy would ultimately be measured by its impact on Nigerians through the creation of quality jobs, stronger indigenous businesses, increased oil production, higher revenues for the Federation and the development of new technical and industrial capabilities.
The President maintained that Nigeria’s natural resources must deliver greater economic benefits to its citizens, stressing that his administration would pursue the implementation of the new framework with urgency.
“Nigeria First,” he said.
