President Bola Tinubu has signed off on a new set of rules that will guide investment in Nigeria’s deep offshore oil fields, a plan the government says can bring in up to $50 billion and get the $10 billion Bonga South West project started.
The approval replaces the old system, where each offshore project was negotiated on its own. In its place is a single set of clear rules that will apply to many projects at once.
The announcement was signed by Special Adviser to the President on Information and Strategy, Bayo Onanuga, on 11 August 2026.
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The new rules are contained in the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. This law spells out who qualifies for incentives and how the process works, giving investors a clearer picture before they commit their money.
Now that the approval is in place, NNPC Limited, which represents the government in Production Sharing Contracts with oil companies, can now begin making the changes needed to put the new rules into effect.
Bonga South West project to be the first test
The Bonga South West project, worth about $10 billion, will be the first major development under the new rules. Nigeria’s large offshore oil projects, which need huge amounts of money to build, have been stuck for years without moving forward.
The plan traces back to a meeting between President Tinubu and Wael Sawan, Chief Executive Officer of oil company Shell plc. During that meeting, Tinubu asked his team to work out fresh steps that could get Nigeria’s offshore oil projects moving again.
Instead of solving the problem one project at a time, the government built a full set of rules that can cover many different types of projects.
Olu Arowolo-Verheijen, the President’s special adviser on oil and gas, said Nigerian companies will be central to how the projects are carried out.
“Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible, strengthening domestic engineering, fabrication, marine logistics, technical services and project management,” Arowolo-Verheijen said.
She said the plan is not only about bringing in more money and oil, but also about creating jobs for Nigerians.
“The objective is not only to increase investment and production, but also to create skilled jobs, deepen local supply chains and position Nigeria as Africa’s regional hub for deep offshore project execution,” she said.
Several government agencies worked on the plan
The new rules came out of talks between the presidency and several government bodies, working alongside oil companies in the industry.
President Tinubu thanked the Federal Ministry of Justice, the Federal Ministry of Finance, the Federal Ministry of Petroleum Resources, the Nigeria Revenue Service, NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Content Development and Monitoring Board. He also thanked the investing companies and other industry players who took part in shaping the plan.
Tinubu, speaking on the approval, said countries that attract long-term investors are not always the ones with the most natural resources.
“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,” Tinubu said.
He said the new rules show his commitment to building a system with clear laws and strong institutions.
“This reform reflects our determination to build an investment environment defined by clear rules, strong institutions and enduring partnerships,” he said.
“We are creating the conditions for capital to flow, for Nigerian businesses to grow, for our people to prosper and for our natural resources to deliver lasting national value.”
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