- Nigeria’s new deep offshore tax incentive could unlock up to $50 billion in oil and gas investment and revive stalled projects.
- The policy aims to boost oil production, attract capital and create more opportunities for Nigerian businesses.
A new tax incentive could unlock up to $50 billion in Nigeria’s deep-offshore oil and gas sector as the Federal Government seeks to attract fresh investment and boost production.
President Bola Tinubu signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, as part of efforts to revive major projects that have faced years of delays. The policy could help move the estimated $10 billion Bonga South West project closer to development. It also targets other deep offshore projects that have yet to reach final investment decisions.
Under the new framework, existing deep offshore leases have until December 31, 2029, to make their final investment decisions. Projects that meet the deadline can qualify for the full standard incentive.
Tinubu said the measure should give investors greater certainty. He argued that companies will only commit large sums to long-term projects when the policy environment remains predictable.
The incentive is part of a wider push to revive Nigeria’s upstream sector. The government wants to increase production after years of underinvestment and delays across major oil projects.
However, the Federal Government also wants more of the economic benefits to remain in Nigeria. Companies seeking additional incentives will have to carry out project activities locally, subject to approved exceptions and Nigerian content rules. That requirement could create more opportunities for Nigerian businesses. Engineering companies, fabrication yards and marine service providers could benefit as offshore developments move forward.
Local workers could also gain from the projects. Tinubu said the government wants the investments to build technical skills and expand Nigeria’s capacity to execute major offshore projects.
The administration is targeting more than crude production. It also expects the projects to generate employment, increase government revenue and strengthen domestic businesses.
The new policy could therefore reshape Nigeria’s offshore investment landscape if it succeeds in moving stalled projects into development.
Tinubu has described the goal more broadly as making Nigeria a major African center for deep offshore project execution. For the oil industry, the key test will now be whether the incentives lead to final investment decisions and actual project activity.
If successful, the policy could bring new capital into the upstream sector while creating more work for Nigerian companies across the wider oil and gas value chain.