Nigeria has introduced a new regulatory and fiscal framework for offshore oil and gas developments as part of government efforts to attract up to $50 billion in investment and accelerate projects that have been delayed, according to the Nigerian presidency.
President Bola Tinubu approved the Deep Offshore Oil and Gas Projects Incentives framework amid ongoing challenges in attracting upstream investment, including regulatory uncertainty, high development costs, and competition from other oil-producing regions.
Presidential spokesperson Bayo Onanuga said the new framework will shift the sector away from project-by-project negotiations toward a standardized, rules-based system through a new tax remission order. The approach is intended to improve investment certainty and enhance Nigeria’s ability to compete for international capital.
The incentives are expected to facilitate the development of several offshore projects, with Shell’s $10 billion Bonga South West development among the first. The project, which has faced prolonged delays, is expected to reach a final investment decision (FID) in 2027.
The new framework also gives NNPC Ltd, Nigeria’s state-owned oil company, the authority to amend eligible production-sharing contracts (PSCs) with producers. Projects benefiting from the incentives will also be expected to maximize local participation where practical, supporting employment and the development of domestic supply chains.
