President Bola Tinubu has approved the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a new fiscal framework designed to attract as much as $50 billion in investment into Nigeria's deep offshore oil and gas sector.
The framework, announced on 11 August, marks a departure from the previous approach of negotiating incentives on a project-by-project basis. It instead sets out clear eligibility criteria and predictable investment terms that the government hopes will give international operators the certainty needed to commit capital.
The policy is expected to unlock the approximately $10 billion Bonga South West project, one of Nigeria's largest offshore developments, which has remained stalled for years.
Under the terms of the order, holders of existing deep offshore leases have until 31 December 2029 to reach a Final Investment Decision in order to qualify for the full standard incentive package. Projects seeking to access supplementary incentives will be required to carry out eligible activities within Nigeria and comply with Nigerian content requirements.
The Federal Government stated that the policy is intended not only to attract capital and raise oil and gas production levels but also to generate employment, strengthen Nigerian businesses, and expand domestic capacity in engineering, fabrication, marine logistics and technical services.
Officials expressed confidence that the new framework will help position Nigeria as a regional hub for deep offshore project execution, leveraging the country's resource base and industrial potential to capture a greater share of the value chain.
