President Bola Tinubu has greenlit a significant policy shift intended to generate $50 billion in deep offshore funding and restart inactive projects. This new regulatory structure replaces inconsistent, individual project negotiations with a standardized, transparent framework to encourage sustained capital inflow into the nation’s energy sector.
Presidential spokesperson Bayo Onanuga announced the move on Tuesday, noting that the strategy will kickstart major developments, starting with the $10 billion Bonga South West initiative. This initiative originated from discussions between President Tinubu and Shell CEO Wael Sawan, focusing on methods to revitalize the offshore pipeline.
The government officially enacted this policy via the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. This mandate replaces ad-hoc solutions with clear eligibility guidelines, allowing NNPC Ltd. to adjust production sharing contracts to suit the new rules. President Tinubu emphasized that investment success depends more on regulatory certainty than resource abundance, aiming to foster an environment of growth and national value.
Special Adviser on Energy Olu Verheijen highlighted the focus on local industrial capacity. She noted that the framework is designed to prioritize domestic execution, aiming to create specialized jobs and establish Nigeria as a regional leader in deep offshore project management.
