President Bola Tinubu has approved a new framework for foreign investment in Nigeria’s deep offshore oil and gas projects, replacing the previous system that required companies to negotiate separate agreements with the Federal Government.
The new framework is expected to unlock up to $50 billion in fresh investment and revive major offshore developments that have been stalled for years, beginning with Shell’s estimated $10 billion Bonga South West project.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed this in a statement issued on Tuesday titled, “President Tinubu Approves Landmark Deep Offshore Investment Framework to Unlock up to US$50 Billion in New Investment.”
Onanuga said the reform establishes common eligibility criteria and clear rules for qualifying projects, eliminating the need for individual investors to negotiate separate terms with the government.
According to him, the previous project-by-project approach had made deep offshore investments slow, unpredictable and, in some cases, stalled for years.
The development followed an earlier meeting between Tinubu and Shell plc Chief Executive Officer, Wael Sawan, during which the President directed officials to develop measures to unlock a new wave of investment in Nigeria’s deep offshore sector.
Rather than developing solutions for individual projects, the Federal Government subsequently translated the directive into a comprehensive investment framework covering multiple categories of qualifying developments.
The framework, implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, replaces project-specific negotiations with transparent eligibility requirements, defined implementation procedures and a long-term investment structure designed to provide greater certainty for investors while protecting Nigeria’s interests.
The approval also empowers NNPC Limited, as the government’s designated counterparty under Production Sharing Contracts (PSCs), to make the necessary amendments to eligible contracts required to implement the new framework.
Focus on Local Content
Special Adviser to the President on Oil and Gas, Olu Arowolo-Verheijen, said the framework places significant emphasis on strengthening Nigerian participation in deep offshore projects.
She said qualifying projects would be expected to maximise execution within Nigeria wherever commercially and technically feasible.
“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,” Onanuga quoted her as saying.
She said the objective was not only to increase investment and oil and gas production but also to create skilled employment, deepen local supply chains and position Nigeria as a regional hub for deep offshore project execution.
Tinubu: Investors Need Certainty
Tinubu commended the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum Resources, Nigeria Revenue Service, NNPC Limited, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Content Development and Monitoring Board, investing partners and other industry stakeholders for their contributions to the development of the framework.
The President said investment decisions were driven not merely by the availability of natural resources but by the certainty provided by a country’s rules and institutions.
“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,” Tinubu said.
He added that the reform reflected his administration’s determination to create an investment environment based on clear rules, strong institutions and long-term 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,” the President said.
