The Nigerian National Petroleum Company Limited (NNPC Ltd.) has welcomed the Federal Government’s new Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, saying the policy could unlock about $50 billion in new investment in Nigeria’s deepwater oil and gas sector. The company described the move as a major step towards restoring investor confidence and accelerating development of the country’s offshore resources.
According to NNPC, the new tax framework is expected to give investors greater fiscal certainty, a factor that could help oil companies move faster with long-delayed Final Investment Decisions (FIDs). The company said projects including Bonga South-West, Zabazaba and Owowo are among the early beneficiaries of the incentive. Bonga South-West, which received approval in March 2026, is expected to become the first FID on a Nigerian deepwater Production Sharing Contract asset since 2008.
NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, described the tax order as one of the most important upstream policy interventions in recent years. He said the reform sends a strong message to international investors that Nigeria is working to create a more stable and competitive environment for deep offshore oil development. For an industry where projects often require billions of dollars and years of planning, the company believes greater clarity around taxes and fiscal terms could make investment decisions easier.
Ojulari said the latest reform also supports NNPC’s ambition to protect existing production while accelerating growth from high-value oil assets. He linked the policy to the company’s target of reaching 3 million barrels of oil per day by 2030, adding that recent reforms have already generated more than $34 billion in investment commitments. The new deep offshore incentives, he said, could help build on that momentum by allowing strategic projects to reach FID and move closer to production.
The development comes as Nigeria continues efforts to attract fresh capital into its oil and gas industry and strengthen energy security. NNPC said the Federal Government’s decision, including the use of Presidential Executive Orders, could help create a more investment-friendly operating environment while delivering greater value to the Nigerian economy. If the expected investments materialise, the Deep Offshore Tax Order could become a key catalyst for new offshore projects, higher oil output and renewed activity across Nigeria’s upstream sector.
source: Leadership
