President Bola Ahmed Tinubu has issued a presidential address outlining the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. The policy framework is designed to end decades of regulatory uncertainty and kickstart stalled capital-intensive offshore developments across Nigeria.
Key Highlights of the Executive Order
- Investment Potential: The order aims to unlock up to $50 billion in new investments, starting with the $10 billion Bonga South West project.
- Strict Timeline for Incentives: Existing deep offshore leaseholders have a defined window until December 31, 2029, to reach Final Investment Decision (FID) to qualify for full incentives under the framework.
- Tenth Sectoral Directive: This marks the 10th major policy directive introduced by the administration to remove constraints and drive competitiveness in Nigeria’s oil and gas industry.
- Local Content Mandate: To qualify for supplementary incentives, project activities must be executed within Nigeria (subject to technical/commercial exceptions) to drive jobs for local fabrication yards, marine logistics, and engineering firms.
Presidential Address & Core Vision
“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.” — President Bola Ahmed Tinubu
- Beyond Resource Extraction: Following direct engagements with Shell Plc CEO Wael Sawan, the administration shifted away from one-off, project-specific negotiations in favor of a universal, predictable tax and investment framework.
- Economic Objectives: The measure focuses on upskilling young Nigerians, empowering local service providers, increasing government revenues, and establishing Nigeria as Africa’s primary hub for deep offshore engineering and project execution.
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