President Bola Tinubu has explained why his administration is rolling out fresh incentives and policy directives to revive investment in Nigeria’s oil and gas sector, saying the country can no longer afford to leave major offshore opportunities undeveloped. His latest move, the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, is designed to create a more attractive investment environment and could help unlock up to $50bn in deep offshore investments.
The new framework is expected to support major projects, beginning with the approximately $10bn Bonga South West project, while giving existing deep offshore leases until December 31, 2029, to reach a final investment decision and qualify for the full standard incentive. Tinubu said investors committing billions of dollars to projects that can take years to develop need clear and predictable terms before they are willing to commit their money. According to him, the government’s priority is to remove the uncertainty that has kept some of Nigeria’s biggest offshore opportunities on hold.
Tinubu described the latest order as the 10th major policy directive introduced by his administration specifically for the oil and gas sector. He said the government is deliberately working to remove barriers affecting investment, production and value creation at a time when Nigeria is seeking to increase crude oil output and attract fresh capital into an industry that has struggled with years of underinvestment and project delays. For the President, however, attracting investment is only part of the bigger picture.
The administration also wants a significant portion of the economic benefits from these projects to remain in Nigeria. Under the new order, projects accessing supplementary incentives will be required to carry out project activities in the country, subject to defined exceptions and Nigerian content requirements. Tinubu said this should create opportunities for Nigerian engineers, fabrication yards, marine and technical service companies, while helping young Nigerians gain skills that can compete globally. The government hopes the approach will strengthen local participation and help position Nigeria as a regional hub for deep offshore project execution.
Ultimately, Tinubu said the success of the $50bn investment target should not be measured by the size of the headline figure alone, but by what Nigerians actually gain from it. He pointed to new jobs, stronger local businesses, higher oil production, increased government revenue and improved technical capacity as the real indicators of success. With the new incentives, the Federal Government is betting that creating greater certainty for investors can turn Nigeria’s deep offshore resources into a stronger source of economic growth and wider opportunities for Nigerians.
source: punch
