- President Bola Ahmed Tinubu signed a new framework on August 11 to replace project-by-project oil investment negotiations with a transparent, rules-based system
- The reform targets up to $50 billion in deep offshore investment and covers large stalled developments including the $10 billion Bonga South West project
- A key condition of the framework requires qualifying projects to maximise execution within Nigeria, creating skilled jobs and deepening local supply chains
FCT, Abuja – President Bola Tinubu has approved a new investment framework aimed at drawing up to $50 billion into Nigeria’s deep offshore oil sector, ending a long-standing practice of negotiating incentives on a project-by-project basis.
Legit.ng reports that presidential spokesperson Bayo Onanuga announced the decision in a statement on Tuesday, August 11, saying the framework provides clear eligibility rules and a durable structure for investors looking at large, capital-intensive offshore projects that have remained dormant for years.
Source: Facebook
What does the deep offshore reform cover?
The policy, given legal effect through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, is designed to apply across multiple categories of qualifying developments rather than being tailored to individual projects. Its immediate focus is the approximately $10 billion Bonga South West development.
The decision follows President Tinubu’s earlier engagement with Shell plc Chief Executive Wael Sawan, during which the President directed officials to develop broader measures for unlocking Nigeria’s offshore investment pipeline. Rather than acting on that directive with a narrow, project-specific solution, the Federal Government built a comprehensive framework applicable to several developments at once.
The approval also clears the Nigerian National Petroleum Company (NNPC) Limited, as the government’s nominated counterparty under existing Production Sharing Contracts, to proceed with necessary amendments to eligible contracts in order to implement the new rules.
Local content at centre of Tinubu’s govt’s framework
Special Adviser on Oil and Gas Olu Arowolo-Verheijen explained that local industrial capacity is central to how the framework operates.
“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,” an excited Arowolo-Verheijen said.
President Tinubu credited the Federal Ministries of Justice, Finance and Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Content Development and Monitoring Board, and investing partners for their roles in shaping the policy.
Speaking on the reform, President Tinubu said:
“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.”
Read the full statement from the presidency below, as shared on a presidential aide’s verified X account:
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NNPC reduces petrol prices
Earlier, Legit.ng reported that the NNPC cut petrol prices at its outlets, as competition among depot operators and domestic refiners continues to push rates lower across the country.
Petrol now sells at N1,205 per litre in Lagos, down N60 from the previous rate of N1,265.
Source: Legit.ng