President Bola Tinubu’s new tax incentives for deep offshore oil and gas projects could unlock about $50bn in investments and increase Nigeria’s crude oil and condensate production by nearly one million barrels per day within the next four to five years, the Nigerian Upstream Petroleum Regulatory Commission has said.
The Executive Commissioner for Development and Production at the NUPRC, Enorense Amadasu, disclosed this during an interview on NTA, where he represented the Commission’s Chief Executive, Oritsemeyiwa Eyesan.
According to a statement issued on Wednesday by the NUPRC’s Head of Media and Corporate Communications, Eniola Akinkuotu, Amadasu said the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Executive Order, 2026, recently signed by Tinubu could accelerate investment decisions on major projects that have already secured regulatory approvals.
“The Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026 recently signed by President Bola Tinubu has the potential not only to unlock $50bn in investments but can also create an additional one million barrels per day of crude oil and condensate from deep offshore fields,” the statement quoted him as saying.
The executive order, also known as Executive Order 9, is aimed at improving the economics of deep offshore oil and gas projects through tax incentives and a more predictable investment framework.
Amadasu said the reform could usher in a new wave of investment in Nigeria’s offshore petroleum sector, where projects typically require billions of dollars and take years to progress from discovery to production.
“We are on the right path, all thanks to Mr President. It will be a huge leap. As of today, we have mined over 4.6 billion barrels from deep offshore assets. In cargo terms, that is about 5,000 tankers,” he said.
Nigeria currently produces about 1.7 million barrels per day of crude oil and condensate, according to Amadasu. Deep offshore fields account for approximately 24 per cent of the country’s oil production and 19 per cent of its gas output.
He said the new framework would create stronger incentives for investors and support the development of the next generation of deep offshore projects.
According to Amadasu, nine projects have already secured approved Field Development Plans, with the next major step being the Final Investment Decision by the companies involved.
“So, where will these volumes be coming from? Nine of these projects have approved FDPs, so the next step expected is the FID in the near to midterm. The $10bn Bonga South will come in 2027, and within the next four to five years, we are expecting almost an additional one million barrels per day,” he stated.
The projected increase of nearly one million barrels per day would represent a significant boost to Nigeria’s current production and could substantially improve the country’s oil revenue outlook if the projects are delivered as planned.
Amadasu said the executive order was expected to encourage international oil companies and other investors to accelerate their Final Investment Decisions on approved projects.
He explained that the reform provides a transparent and rules-based investment framework designed to support the development of major deep offshore assets.
The policy is particularly important because deep offshore projects are among the most capital-intensive developments in the petroleum industry, requiring significant spending on drilling, floating production facilities, subsea infrastructure and specialised logistics. Stable fiscal terms and regulatory certainty are therefore critical to attracting investment.
Beyond oil production, Amadasu said the anticipated projects could stimulate growth in other sectors, particularly marine services and logistics.
He noted that Nigeria would need to expand its marine and logistics capacity to handle the expected increase in offshore activities.
“It aims to make Nigeria the regional hub for deep offshore projects,” Amadasu said.
He added that other potential benefits included increased oil and gas reserves, technology and skills transfer, as well as the creation of new employment opportunities.
