Tinubu Approves $50bn Offshore Investment Framework

President Bola Tinubu has approved a significant reform to enhance Nigeria's investment landscape in the oil sector, specifically targeting deep offshore developments. This new framework, established through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, aims to unlock up to $50 billion in investments by replacing project-by-project negotiations with a transparent, rules-based system.

The framework includes a standard tax credit of $3-$4.50 per barrel, plus an additional $1 per barrel for future leases, incentivizing greenfield projects that reach Final Investment Decision (FID) by 2029. The reform is designed to support major projects, starting with the $10 billion Bonga South West project, and aims to strengthen Nigeria's competitiveness for global investment capital.

Tinubu commended various stakeholders, including the Federal Ministry of Justice, NNPC Limited, and Shell plc's CEO Wael Sawan, for their collaboration in shaping this framework, emphasizing the importance of certainty in attracting long-term investments.