Nigerian President Bola Tinubu approved a new regulatory and fiscal framework for offshore oil and gas projects, his office said on Tuesday, a move the government says could attract up to $50 billion in investment and revive long-delayed developments.
Nigeria has struggled in recent years to attract new upstream oil investment amid regulatory uncertainty, high project costs and competition from other oil-producing jurisdictions.
Presidential spokesperson Bayo Onanuga said the Deep Offshore Oil and Gas Projects Incentives replaces project-specific negotiations with a rules-based system under a new tax remission order designed to provide investor certainty and strengthen Nigeria's competitiveness for global capital.
The government said the framework would support a new wave of offshore projects, starting with Shell's long-delayed $10 billion Bonga South West project, which is expected to reach a final investment decision in 2027.
The approval also enables state oil firm NNPC Ltd to amend eligible production-sharing contracts with producers while requiring qualifying projects to prioritise local execution where feasible, boosting jobs and supply chains.
A defining feature of the reform is its emphasis on Nigerian industrial capability, said Olu Arowolo-Verheijen, the President’s special adviser on oil and gas. “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. 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.”
Tinubu commended the efforts that went into shaping the framework. “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. This reform reflects our determination to build an investment environment defined by 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.”
(Reuters and staff)