Nigeria deep offshore investment framework approved

President Bola Tinubu approved a new rules-based investment framework for Nigeria's deep offshore oil and gas sector, formalized through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. The framework replaces project-by-project negotiations with transparent eligibility criteria and standardized incentives, aiming to unlock up to $50 billion in new investment and revive stalled projects, starting with Shell plc's approximately $10 billion Bonga Southwest development. It provides production tax credits up to $11.50 per barrel for qualifying oil projects and $8 per barrel of oil equivalent for non-associated gas projects, along with a Profit Oil Reset and profit-gas sharing formulas. NNPC is authorized to amend eligible Production Sharing Contracts to implement the framework. The reform emphasizes local content, requiring qualifying projects to maximize execution in Nigeria where commercially and technically feasible, strengthening domestic engineering, fabrication, marine logistics, and project management. The framework was developed through inter-agency collaboration involving the Nigeria — Ministry of Petroleum Resources, the Nigeria — Nigerian Upstream Petroleum Regulatory Commission, the Nigeria — Nigerian Content Development and Monitoring Board, the Germany — Federal Ministry of Finance (Germany), the Nigeria — Nigeria Revenue Service, and the Nigeria — Ministry of Justice (Nigeria). President Tinubu engaged with Shell plc CEO Wael Sawan, directing the development of these measures. The reform aims to provide regulatory certainty to attract global capital and position Nigeria as a competitive offshore investment destination.