Capital moves, countries compete for it and investors committing billions of dollars over many years need certainty. We are providing that certainty
By Mmesoma Onwuka
President Bola Tinubu has signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, as part of efforts by the Federal Government to attract up to $50 billion in new investments into Nigeria’s deep offshore oil and gas sector.
The President, in a statement, said the new policy was designed to provide investors with greater certainty and unlock major offshore projects, beginning with the approximately $10 billion Bonga South West project.
Tinubu said the government could no longer afford to allow major offshore opportunities to remain undeveloped for years, stressing that the new framework would create a clear investment window for qualifying projects.
Under the policy, existing deep offshore leases will have until December 31, 2029, to reach Final Investment Decision (FID) and qualify for the full standard incentive.
The President said the measure was necessary to make Nigeria more competitive in the global race for capital, particularly for projects requiring billions of dollars in long-term investment.
“Capital moves, countries compete for it and investors committing billions of dollars over many years need certainty. We are providing that certainty,” he said.
Tinubu described the tax remission order as the 10th major policy directive of his administration specifically targeted at the oil and gas industry, saying the government had remained focused on removing barriers to investment, increasing production and expanding value creation.
He, however, stressed that attracting foreign capital alone would not be sufficient, noting that the investments must generate tangible benefits for Nigerians.
According to him, the government expects the projects to create opportunities for Nigerian engineers, fabrication yards, marine operators and technical service providers, while also equipping young Nigerians with world-class skills.
“I want the work to come home to Nigeria,” the President said, adding that projects benefiting from the supplementary incentives would be required to undertake project activities within the country, subject to defined exceptions and Nigerian Content requirements.
Tinubu said the administration’s broader ambition was to position Nigeria as Africa’s regional hub for deep offshore project execution.
He added that the success of the projected $50 billion investment would ultimately be measured by its impact on the Nigerian economy through job creation, stronger local businesses, increased oil production, higher government revenue and the development of technical expertise.
“For me, the real measure of $50 billion will be what Nigerians see from it: good jobs, stronger Nigerian businesses, greater production, more revenue for the Federation and capabilities built here at home,” he said.
The President further reaffirmed his administration’s commitment to ensuring that Nigeria’s natural resources contribute more significantly to national development.
“Our natural resources must work harder for our people. Nigeria First,” Tinubu said.