President Bola Ahmed Tinubu has approved the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a new policy framework aimed at attracting up to $50 billion in fresh investment into Nigeria’s deep offshore oil and gas sector.
The Federal Government said the reform is designed to revive major offshore projects that have remained stalled for years, beginning with the approximately $10 billion Bonga South West project.
According to President Tinubu, the new framework provides investors with greater certainty and a predictable investment environment, including a clear window for existing deep offshore leases to reach Final Investment Decision (FID) by December 31, 2029 and qualify for the full standard incentive.
Government Targets Jobs, Local Businesses
Beyond attracting foreign capital, the President said the policy is intended to ensure that a significant portion of the economic benefits of new offshore investments remains in Nigeria.
Tinubu said the government wants Nigerian engineers, fabrication yards, marine and technical service companies and young professionals to play a greater role in the projects.
“I want the work to come home to Nigeria,” the President said, stressing the need for Nigerian businesses and workers to benefit from the investment cycle.
For projects that access the supplementary incentives under the new framework, activities are expected to be carried out in Nigeria, subject to defined exceptions and existing Nigerian Content requirements.
Nigeria Seeks Regional Offshore Hub Status
The President said the administration's ambition is to position Nigeria as Africa's regional hub for deep offshore project execution, while developing the technical expertise and industrial capacity needed to support the sector.
He described the new order as the tenth major policy directive of his administration specifically targeting the oil and gas sector, saying previous reforms have focused on addressing constraints to investment, production and value creation.
The framework replaces project-by-project negotiations with clearer eligibility criteria and implementation procedures intended to provide investors with long-term certainty.
Bonga South West Project to Lead Investment Drive
The approximately $10 billion Bonga South West project is expected to be among the first major developments to benefit from the new framework.
The Federal Government said the broader framework could unlock up to $50 billion in deep offshore investment, potentially increasing oil production, government revenues and opportunities for Nigerian businesses.
President Tinubu said the ultimate success of the policy would not be measured only by the amount of capital attracted but by its impact on Nigerians.
He listed job creation, stronger Nigerian businesses, increased production, higher government revenues and new technical capabilities among the expected benefits.
“Our natural resources must work harder for our people,” Tinubu said.
Nigeria First.
Twisdic Info Analysis: The new deep offshore incentive framework represents a significant attempt by the Tinubu administration to revive large-scale offshore oil projects while making local participation a central part of the investment strategy.
If effectively implemented, the policy could create opportunities across engineering, fabrication, marine logistics, technical services and other areas of Nigeria's oil and gas value chain.
However, the real test will be whether the projected investments translate into actual projects, sustainable jobs, stronger local companies and increased government revenue rather than remaining largely on paper.