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 investment in Nigeria’s deep offshore oil and gas sector.
The President, in a statement addressed to Nigerians, said the framework would provide clear and predictable terms to attract long-term capital into major offshore projects that have remained stalled for years.
According to Tinubu, the approximately $10 billion Bonga South West project is expected to be among the first major beneficiaries of the new framework.
He said existing deep offshore leases would have a window to reach Final Investment Decision (FID) by December 31, 2029, to qualify for the full standard incentive provided under the Order.
Tinubu described the policy as the 10th major policy directive of his administration specifically targeted at the oil and gas sector, saying the measures were designed to address constraints limiting investment, production and value creation.
The President said Nigeria could no longer afford to leave its deep offshore resources undeveloped, stressing that countries with the greatest natural resources do not automatically attract the most capital.
“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,” he said.
Tinubu also emphasised that attracting foreign investment was only part of the administration’s objective, saying the government wanted the resulting economic opportunities to benefit Nigerians directly.
He said the Order prioritises the involvement of Nigerian engineers, fabrication yards, marine and technical service companies, as well as young Nigerians who would acquire skills through the projects.
Under the new framework, projects accessing supplementary incentives are expected to carry out activities in Nigeria, subject to defined exceptions and Nigerian Content requirements.
Tinubu said his administration’s broader ambition was to position Nigeria as Africa’s regional hub for deep offshore project execution by developing not only its natural resources but also the skills, businesses and industrial capacity required to exploit them.
The President disclosed that during his engagement with Shell Plc Chief Executive Officer, Wael Sawan, he directed his team to develop a framework that would go beyond addressing the needs of a single company or project and instead unlock a wider pipeline of investments while safeguarding Nigeria’s long-term interests.
He said the success of the new policy would ultimately be measured by the creation of quality jobs, stronger Nigerian businesses, increased oil production, higher revenues for the Federation and new technical and industrial capabilities developed within the country.
“Our natural resources must work harder for our people,” Tinubu said, describing the new decision as part of his administration’s determination to accelerate investment and development in Nigeria’s oil and gas industry.
