Tinubu Approves Deep Offshore Reform Targeting $50bn Investment in Nigeria’s Oil Sector
Tinubu approves offshore investment reform
President Bola Tinubu has approved a new deep offshore investment framework designed to unlock up to $50 billion in fresh investment across Nigeria’s offshore oil and gas sector and revive major projects that have remained stalled for years.
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The reform replaces project-by-project negotiations for investment incentives with a transparent, rules-based framework under the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
New framework targets offshore investment
The Presidency said the new framework is designed to provide investors with greater certainty through clear eligibility requirements, implementation procedures and a more predictable investment structure.
The policy aims to improve Nigeria’s competitiveness in attracting international capital into deep offshore developments, where high project costs, regulatory uncertainty and long investment cycles have affected investment decisions in recent years.
The framework will begin with the approximately $10 billion Bonga South West project, which has become a major test of the government's efforts to revive large-scale offshore developments.
Bonga South West at centre of reform
Bonga South West is expected to be one of the first major projects to benefit from the new investment framework.
The Tinubu administration had already taken steps in January 2026 to gazette targeted investment-linked incentives for the project in an effort to support its Final Investment Decision and encourage fresh capital into the offshore sector.
The latest framework expands the approach beyond individual negotiations by establishing broader rules that qualifying offshore projects can operate under.
This could reduce uncertainty for investors considering projects that require substantial upfront capital and long development periods.
Government seeks stronger local participation
The reform also places emphasis on increasing the role of Nigerian companies in offshore project execution.
According to the Presidency, qualifying projects will prioritise execution within Nigeria where commercially and technically feasible. The objective is to increase opportunities for domestic engineering, fabrication, marine logistics, technical services and project management companies.
The government expects this approach to create skilled employment, strengthen domestic supply chains and position Nigeria as a regional hub for deep offshore project execution.
Reform comes amid declining offshore investment
Nigeria's deep offshore industry has faced difficulties attracting new investment as several mature offshore fields experience declining production.
The Nairametrics report noted that international oil companies have remained cautious about committing capital to new developments despite the introduction of the Petroleum Industry Act, which sought to establish a clearer fiscal and regulatory framework for the petroleum sector.
The new reform therefore seeks to address investment uncertainty by providing a more predictable framework for qualifying projects.
$1bn Usan investment adds to offshore momentum
The latest policy also follows a recent $1 billion commitment by ExxonMobil and its partners to the Usan Infill Project.
The project is expected to increase Nigeria's crude oil production by about 40,000 barrels per day, providing another indication of renewed activity in the offshore sector.
The combination of new incentives and additional offshore investments could support higher production and improve the country's foreign exchange earnings if the projects reach development and production stages as planned.
Potential implications for infrastructure and property
The impact of the reform could extend beyond oil production.
Large offshore projects require extensive supporting infrastructure, including fabrication yards, marine logistics facilities, warehouses, offices, worker accommodation, transport links and specialised industrial facilities.
Increased investment could therefore generate additional demand for industrial and commercial property in locations supporting offshore operations.
The development of local supply chains could also stimulate activity around existing industrial and logistics hubs, particularly in coastal areas connected to Nigeria's oil and gas industry.
For real estate investors, the more important consideration will be whether offshore investment produces sustained demand for supporting infrastructure rather than short-term project activity.
Investment certainty remains critical
The shift from project-by-project negotiations to a rules-based framework could improve investor confidence by making the conditions for accessing incentives more transparent.
However, attracting the targeted $50 billion will depend on more than the availability of tax incentives. Investors will also assess regulatory stability, project economics, security, infrastructure, financing conditions and the ability of projects to reach final investment decisions and production.
The Bonga South West project will provide an early indication of whether the new framework can translate policy changes into actual capital commitments.
Outlook
President Tinubu's approval of the deep offshore investment framework represents a significant attempt to revive large-scale investment in Nigeria's offshore oil and gas sector.
The government's target of unlocking up to $50 billion could generate wider economic activity if projects move from approval to construction and production, particularly through local supply chains, employment and supporting infrastructure.
For the property and construction sectors, the potential opportunity lies in the infrastructure ecosystem that accompanies major energy investments. The extent of that opportunity, however, will depend on how quickly the new framework converts investor interest into funded projects and physical development.
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