Tinubu Signs Deep Offshore Oil Incentives Order Unlocking $50B

President Bola Ahmed Tinubu has signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a policy measure designed to stimulate large-scale investment in Nigeria’s offshore petroleum sector. The president announced the decision in a statement posted on his official X account, stating that the framework provides clear and predictable terms for a new generation of deep offshore projects.

According to the presidency, the order has the potential to unlock up to $50 billion in investment, beginning with the approximately $10 billion Bonga South West development. Tinubu emphasised that the incentive structure aims to accelerate final investment decisions on stranded or underdeveloped deepwater assets. For existing deep offshore leases, the order establishes a window to reach final investment decision by 31 December 2029 in order to qualify for the full standard incentive package.

The latest directive marks the tenth major policy intervention by the Tinubu administration targeting the oil and gas industry. It follows the implementation of Executive Order 9 in March, which mandated the remittance of oil revenues to the Federation Account Allocation Committee in a bid to improve transparency and fiscal discipline in the sector.

Analysts view the tax remission order as a strategic response to prolonged investment stagnation in Nigeria’s deepwater acreage, where regulatory uncertainty and fiscal terms have historically deterred capital commitment. By offering a defined incentive pathway, the government seeks to reposition the country as a competitive destination for offshore exploration and production, particularly as global energy majors rebalance portfolios toward lower-cost, lower-carbon barrels.

The Bonga South West project, operated by Shell Nigeria Exploration and Production Company, is widely regarded as a bellwether for the new framework. Its progression to final investment decision would signal market confidence in the revised terms and could catalyse a cluster of associated developments in the Gulf of Guinea.

Implementation details, including the specific tax remission rates and eligibility criteria, are expected to be gazetted shortly. Industry stakeholders will be monitoring the regulatory rollout closely, particularly the coordination between the Nigerian Upstream Petroleum Regulatory Commission and the Federal Inland Revenue Service to ensure seamless application.

The order arrives amid broader efforts to revitalise Nigeria’s oil output, which has struggled to meet OPEC quotas in recent years due to underinvestment, crude theft, and infrastructure decay. Successful deployment of the incentives could provide a meaningful uplift to production volumes and government revenues over the medium term.