Tinubu Approves New Deep Offshore Investment Framework to Unlock $50 Billion

A Shift From Negotiation to Rules

President Bola Tinubu has approved a new regulatory and fiscal framework for offshore oil and gas projects, in a move the Federal Government says could unlock as much as fifty billion dollars in fresh investment and revive developments that have sat idle for years. Presidential spokesperson Bayo Onanuga announced the approval, describing the framework, known as the Deep Offshore Oil and Gas Projects Incentives, as a replacement for the previous practice of negotiating terms separately for each project. In its place, a new tax remission order will apply a rules-based structure intended to give investors greater certainty and strengthen Nigeria's competitiveness against other oil-producing jurisdictions.

The reform responds to a persistent problem in Nigeria's upstream sector, where regulatory uncertainty, high project costs and competition from other countries have discouraged fresh capital in recent years despite the country's proven offshore reserves.

Bonga South West Leads the Way

The government has indicated that Shell's long-delayed ten billion dollar Bonga South West project will be the first major development to test the new framework, with a final investment decision expected in 2027. The approval also permits NNPC Ltd, the state oil company, to amend eligible production-sharing contracts with producers under the new terms, while qualifying projects will be required to prioritise local execution where feasible, a condition aimed at boosting jobs and strengthening domestic supply chains around offshore developments.

The move builds on a broader push by the Nigerian Upstream Petroleum Regulatory Commission to attract capital into the sector, including preparations already underway for a 2026 licensing round covering additional blocks across the country's sedimentary basins.

Why It Matters

For students following energy law, the new framework offers a live example of how fiscal incentive design under the Petroleum Industry Act is being adapted to solve real investment bottlenecks rather than remaining purely theoretical. For practicing lawyers advising oil majors, indigenous producers or NNPC itself, the shift toward a rules-based tax remission order changes how production-sharing contract amendments and offshore project financing will be structured going forward, and firms advising in the space should expect a wave of client interest as the Bonga South West decision approaches.