Tinubu approves deep offshore reform targeting $50 billion oil sector investment
By Aboki Forex —
President Bola Tinubu has approved a landmark deep offshore investment reform aimed at unlocking up to $50 billion in new investment across Nigeria's offshore oil and gas sector. The reform replaces the long-standing system of project-by-project negotiations with a transparent, rules-based investment framework.
The approval was disclosed in a statement issued on Tuesday by Bayo Onanuga, Special Adviser to the President on Information and Strategy. He said the reform is designed to restart large-scale offshore developments that have remained stalled for decades.
New rules for offshore investors
According to the Presidency, the framework is being implemented through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. It is intended to provide investors with greater certainty while safeguarding long-term national value.
The new framework introduces transparent eligibility criteria, clear implementation processes, and a durable investment architecture for qualifying offshore developments. It will support the next generation of deep offshore projects, beginning with the approximately $10 billion Bonga South West project.
What officials said
Olu Arowolo-Verheijen, the President's Special Adviser on Oil and Gas, said projects that qualify under the framework will prioritise execution within Nigeria wherever commercially and technically feasible. This will help strengthen 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,” he said.
President Tinubu said the reform reflects the administration's commitment to building an investment environment anchored on 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,” the President said.
Stalled projects and new momentum
The approval builds on earlier efforts by the Tinubu administration to revive investment in Nigeria's deep offshore oil sector. In January 2026, the President approved the gazetting of targeted, investment-linked incentives for Shell's proposed Bonga South-West deep offshore project. That move was intended to accelerate fresh capital inflows into the energy sector and support the project's Final Investment Decision (FID).
Nigeria's deep offshore sector has struggled to attract new investment in recent years as many existing offshore fields mature, contributing to declining production and weaker foreign exchange earnings. Although the Petroleum Industry Act (PIA) was introduced to reset the fiscal and regulatory framework for the oil and gas sector, major international oil companies have remained cautious about committing capital to new offshore developments.
The latest reform comes weeks after ExxonMobil and its partners committed $1 billion to the Usan Infill Project, an offshore development expected to increase Nigeria's crude oil production by about 40,000 barrels per day. That signals renewed momentum in offshore investment activity.
For the naira and Nigerian businesses, the reform aims to boost crude oil production, create skilled jobs, and support foreign exchange earnings. The test will be whether it translates into final investment decisions and actual capital flows.