President Bola Tinubu has signed and approved the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, as part of efforts to attract as much as $50 billion in fresh investment into Nigeria’s deep offshore oil and gas industry.
The President said the new framework is designed to give investors greater clarity and predictability, which he noted are essential for securing the huge financial commitments required for long-term offshore projects.
The policy is expected to facilitate major developments in the sector, starting with the estimated $10 billion Bonga South West project. Under the new order, existing deep offshore leases have until December 31, 2029, to achieve Final Investment Decision (FID) and become eligible for the full standard incentive.
Tinubu explained that the measure became necessary to ensure that Nigeria’s offshore oil resources do not remain untapped as other oil-producing nations intensify competition for international capital.
“Capital moves, and countries compete for it every day. 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.”
The President described the order as the 10th major policy directive of his administration focused specifically on the oil and gas industry. According to him, the various measures are aimed at eliminating investment barriers, boosting oil production and strengthening Nigeria’s competitiveness in the global energy market.
Tinubu however, emphasised that attracting foreign investment alone would not be sufficient, stressing that Nigerian workers and businesses must also benefit substantially from the projects.
He said the government expects Nigerian engineers to participate in the projects, local fabrication yards to receive contracts, marine and technical service providers to expand their operations, and young Nigerians to gain skills that would remain useful even after individual oil projects have ended.
Under the supplementary incentives, the order also requires project-related activities to be undertaken within Nigeria, except where specified exemptions apply, while complying with Nigerian Content requirements.
The President said his long-term objective is to transform Nigeria into Africa’s regional centre for deep offshore project execution by developing not only its oil and gas resources but also the technical expertise, industrial capacity and local businesses required to fully exploit them.
Tinubu disclosed that his discussions with Shell Chief Executive Officer, Wael Sawan, also centred on establishing a framework that could unlock a broader pipeline of offshore investments rather than addressing the challenges of only one company or project.
He maintained that the real test of the policy would be measured by its impact on Nigerians, particularly through the creation of quality jobs, stronger local enterprises, increased oil production, higher government revenue and the development of new industrial capabilities.
“Our natural resources must work harder for our people.”
Tinubu pledged that his administration would implement the new framework with urgency, describing the initiative as another component of his broader “Nigeria First” agenda.