Tinubu Signs Deep Offshore Tax Incentive Order to Attract $50bn Investment

President Bola Ahmed Tinubu has signed a new fiscal framework designed to unlock up to $50 billion in investment in Nigeria’s deep offshore oil and gas sector.

The President approved the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, as part of efforts to revive major offshore projects that have remained stalled because of investment and regulatory challenges.

The new order introduces a clearer and more predictable investment framework, replacing project-by-project negotiations with defined eligibility requirements and implementation procedures.

According to the Presidency, the policy is intended to provide greater certainty for investors while protecting Nigeria’s long-term economic interests. It is also expected to support the development of major deepwater projects and strengthen crude oil and gas production.

Tinubu targets $50bn deepwater investment

The Federal Government expects the new deep offshore tax incentives to attract as much as $50 billion in fresh investment, potentially reviving large-scale projects that require significant capital and advanced offshore technology.

One of the projects expected to benefit from the renewed investment environment is the proposed Bonga South West development, which has an estimated investment requirement of about $10 billion.

The framework is also aimed at positioning Nigeria as a leading destination for deep offshore oil and gas investment in Africa.

New incentives to boost Nigeria’s oil sector

Under the new policy, eligible offshore developments can access supplementary incentives subject to specific conditions, including requirements relating to Nigerian content and domestic project execution.

The Presidency said qualifying projects will be encouraged to maximise activities carried out within Nigeria where commercially and technically feasible.

This could increase opportunities for Nigerian engineering companies, fabrication yards, marine logistics operators, technical service providers and other businesses connected to the oil and gas value chain.

Government seeks higher oil production and jobs

The Tinubu administration said the policy is not solely focused on attracting foreign capital but also on increasing domestic economic activity generated by major offshore developments.

The government expects renewed investment to support oil production growth, job creation, local supply chains and industrial development.

The latest deepwater investment framework represents another major oil and gas policy measure by the Tinubu administration as Nigeria seeks to attract long-term capital and strengthen its position in the global energy market.

With the new 2026 Deep Offshore Tax Remission Order, the Federal Government hopes to restart delayed offshore oil projects, increase investment in Nigeria’s energy sector and unlock billions of dollars in potential economic activity.