New Oil Incentives Will Boost Investment and Production in Nigeria

The Nigerian National Petroleum Company Limited (NNPC Ltd) has praised the Federal Government for signing the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. They see it as a major reform that will improve Nigeria’s attractiveness for deep offshore investment.

President Bola Tinubu approved the order on Tuesday. This is part of efforts to bring in big investments into Nigeria’s deep offshore oil and gas sector.

In a statement released on Thursday, NNPC said this new order creates a clear, predictable, and globally competitive fiscal framework for new deep offshore projects.

The company noted that this framework will provide the certainty needed to attract long-term investment, speed up Final Investment Decisions (FIDs), and maximize profits from Nigeria’s offshore resources.

The order aims to help Nigeria reach its goal of boosting crude oil production to 3 million barrels per day (MMbopd) by 2030.

Framework to Unlock Offshore Investments

During the announcement on Tuesday, President Tinubu said the new incentive framework could unlock up to $50 billion in deep offshore investments. This will start with the roughly $10 billion Bonga South West project.

“I have signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, creating a clear and predictable framework capable of unlocking up to $50 billion in deep offshore investment, beginning with the approximately $10 billion Bonga South West project,” Mr Tinubu stated.

The policy aims to make projects that were on hold more attractive by giving investors tax incentives and clearer terms for their investments.

According to NNPC, this framework is set to strengthen Nigeria’s position as a top spot for deep offshore oil and gas development, unlocking more than $50 billion in new investment.

The expected investments include major projects like Bonga South West, Zabazaba, and Owowo Deep Offshore developments. Bonga South West, which got approval in March 2026, will be the first Final Investment Decision on a deepwater Production Sharing Contract asset since 2008.

‘Transformative Reform’

The Group Chief Executive Officer of NNPC Ltd., Bashir Ojulari, said this order is one of the most important policy changes in Nigeria’s oil sector in recent years.

“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive, and investment-friendly environment for deep offshore development,” Mr Ojulari said.

“Fiscal certainty is a key factor in investment decisions, and this framework gives the clarity the industry has long needed,” he added.

Mr Ojulari noted that the order fits with NNPC’s plan to protect current production, boost short-term growth, and attract new investments into valuable assets.

“For NNPC Ltd, the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets,” he said.

He added that the reform boosts the company’s confidence in hitting its 3 MMbopd production target while creating more value for its shareholders and the Nigerian economy.

Mr Ojulari mentioned that recent changes in Nigeria’s oil sector have already led to over $34 billion in new investment commitments. He believes the Deep Offshore Incentives Order will continue this trend by allowing timely FIDs on key offshore projects.

The NNPC CEO praised President Tinubu for his dedication to creating a supportive environment for investment and growth in Nigeria’s energy sector through various executive orders.

The company stated that this latest reform shows its commitment to driving sustainable production growth, attracting responsible investments, enhancing Nigeria’s energy security, and delivering long-term value to the Federation.