President Bola Ahmed Tinubu has signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, introducing a new framework aimed at providing greater certainty for investors and unlocking as much as $50 billion in fresh investment in Nigeria’s deep offshore oil and gas sector.

The new order replaces the previous system of project-by-project negotiations with a more defined and transparent framework for qualifying deep offshore projects, potentially making investment decisions easier and more predictable for international oil companies and other investors.

According to the Nigerian National Petroleum Company Limited (NNPC), the reform is expected to support the development of major offshore projects, with the Bonga South West project identified as the first beneficiary of the new incentive framework.

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The reform comes as Nigeria seeks to accelerate investments in its petroleum industry and increase crude oil production towards its ambition of reaching three million barrels per day by 2030.

NNPC said the new framework could help build on more than $34 billion already committed to Nigeria’s petroleum sector following recent reforms aimed at improving the investment environment.

The incentives are also expected to generate wider opportunities for Nigerian businesses and professionals across the oil and gas value chain. Engineers, fabricators, marine logistics providers, project managers and other local service providers are expected to benefit from increased activity as qualifying offshore projects move towards development.

The framework places emphasis on Nigerian Content, requiring local participation in areas where the necessary capabilities exist. This could create additional opportunities for local companies while strengthening Nigeria’s technical and industrial capacity in offshore oil and gas operations.

NNPC said it remains the Federal Government’s nominated counterparty on the relevant Production Sharing Contracts and is working to implement the necessary amendments to give effect to the new incentive regime across qualifying projects.

The new policy is part of the Federal Government’s broader effort to create a more predictable investment environment for the petroleum sector. By providing clearer fiscal terms upfront, the government hopes to reduce uncertainty that has historically contributed to delays in the development of large offshore projects.

The Bonga South West development is expected to be an important test of the new framework. The project has the potential to unlock significant offshore production and attract substantial capital into Nigeria’s energy sector.

The government is also seeking to position the petroleum industry as a stronger catalyst for economic growth, industrial development, job creation and technology transfer.

For investors, the central attraction of the new regime is greater certainty around the fiscal environment before committing capital to projects that typically require billions of dollars and several years of development.

For Nigeria, the success of the policy will ultimately depend on how quickly investment commitments translate into actual project execution, increased production, local economic activity and sustainable government revenues.

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The reform signals the Federal Government’s intention to make Nigeria’s deep offshore sector more competitive at a time when oil companies are increasingly directing capital towards jurisdictions with clearer fiscal frameworks and more predictable investment conditions.

With the new incentives now in place, the focus will shift to implementation and whether the policy can convert investor interest into the large-scale offshore developments needed to support Nigeria’s production ambitions.

NNPC described the order as a significant step towards positioning Nigeria as a more attractive destination for deep offshore energy investment, reinforcing the principle that greater certainty can help attract long-term capital into the petroleum sector.