Nigeria President Bola Ahmed Tinubu approved a framework targeting up to $50 billion in new deep offshore investment, the presidency said Tuesday.
The reform replaces project-by-project negotiations with a rules-based system aimed at restarting large, capital-intensive offshore developments that have remained stalled for decades.
The framework will support the next generation of deep offshore projects, starting with the approximately $10 billion Bonga South West project, while improving Nigeria's appeal to global investors.
The government developed the reform after Tinubu's engagement with Shell (SHEL) chief executive officer Wael Sawan, converting the President's directive into a framework covering multiple eligible offshore developments.
The Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, establishes eligibility criteria and implementation processes designed to give investors greater certainty while protecting Nigeria's long-term interests.
Nigeria's new deepwater oil projects can receive tax credits of up to $11.50 per barrel under the executive order, with the incentives available through Dec. 31, 2029, according to a Bloomberg report.
The framework also allows Nigerian National Petroleum Company, the government's nominated counterparty under production sharing contracts, to amend eligible agreements needed to implement the new investment structure.
Projects qualifying under the framework will prioritize work in Nigeria where commercially and technically feasible, supporting local engineering, fabrication, marine logistics, technical services and project management, the presidency said.
The government expects the reform to boost investment and production while creating skilled jobs, strengthening local supply chains and positioning Nigeria as a regional deep offshore project hub.
"This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships," President Bola Ahmed Tinubu said.