Tinubu sets up new plan to attract $50 billion for offshore oil investments

President Bola Tinubu has approved a new plan to attract up to $50 billion in investments for deep offshore oil and gas projects. This move aims to revive major projects that have been stuck for years.

The new plan replaces the old method of negotiating each project separately. Instead, it introduces clear criteria and rules for investment. This is meant to make things more certain for investors and help Nigeria compete better for global funds.

A statement from Bayo Onanuga, Tinubu's Special Adviser on Information and Strategy, said the new rules are expected to support future deep offshore projects. This includes the Bonga Southwest project, which is worth about $10 billion.

The statement explained that this decision came after Tinubu spoke with Wael Sawan, the CEO of Shell. During their conversation, Tinubu pushed for ways to attract more investments in Nigeria’s deep offshore sector.

Instead of focusing on individual projects, the government created a wider investment plan that applies to different types of deep offshore developments. This framework is being put into action through the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.

The new rules will provide investors with clearer requirements and procedures. They are also designed to protect Nigeria’s long-term economic interests.

The approval allows NNPC Limited to make changes to the Production Sharing Contracts (PSCs) needed to carry out the new plan.

This reform aims to boost local involvement in offshore projects. It encourages project work to happen in Nigeria whenever it is possible and practical.

Olu Arowolo-Verheijen, Tinubu’s adviser on oil and gas, mentioned that the plan will help grow local industry and increase investment and oil production.

“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible. This will strengthen domestic engineering, fabrication, marine logistics, technical services and project management,” she said.

“The aim is not just to increase investment and production, but also to create skilled jobs, boost local supply chains and make Nigeria the leading hub for deep offshore projects in Africa.”

The presidency explained that the framework came from a thorough process involving different government agencies. These include the Federal Ministry of Justice, Federal Ministry of Finance, Federal Ministry of Petroleum Resources, Nigeria Revenue Service, NNPC Limited, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian Content Development and Monitoring Board.

Tinubu praised the institutions and partners involved in creating the framework. He said that countries attracting long-term investments are not always those with the most resources but those that can offer certainty to investors.

“The countries that attract long-term investment are not necessarily those with the greatest natural resources. They are the ones that provide the greatest certainty,” the president said.

“This reform shows our commitment to building an investment environment with clear rules, strong institutions and lasting partnerships.”

He added that the government is working to create better conditions for more capital to come in, help Nigerian businesses grow and get more value from the country’s natural resources.

Nigeria is looking to boost investment in its deep offshore oil and gas sector. This comes amid worries about the high costs and challenges of offshore projects and how competitive its tax system is.

The Bonga Southwest project, managed by Shell, is one of the key projects expected to gain from this new plan. The presidency stated that this broader reform is meant to do more than just support one project. It aims to create a lasting investment structure that can back multiple deep offshore projects and attract significant new capital to Nigeria’s oil and gas sector.