President Bola Tinubu has announced that Nigeria's recent reforms in the oil and gas sector are expected to unlock up to $50 billion in new deep offshore investments. Tinubu, represented by Vice President Kashim Shettima, made this statement on Tuesday in Abuja at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The president highlighted that the Deep Offshore Oil and Gas Projects Incentive Tax Order 2026 has replaced uncertainty with clear and published investment criteria.
The new incentive tax order requires projects to be executed in Nigeria wherever applicable and is designed to unlock up to $50 billion in new investment, starting with the Bonga South-West project. According to Tinubu, the measure is particularly important because some of Nigeria's largest oil prospects are located in the deep offshore but have remained undeveloped for years. The president emphasized that the Federal Government's message is that Nigeria is open to long-term investment and committed to providing clear and predictable terms.
Tinubu noted that the Petroleum Industry Act (PIA) 2021 has provided a strong foundation for investment by establishing clear rules, a predictable regulatory framework, and mechanisms for greater participation of host communities. He also mentioned that Nigeria has recorded progress in restoring security in oil-producing areas, attracting investors, and improving upstream investment opportunities through open and competitive processes. As a result, investors who previously looked elsewhere are returning to Nigeria, which has become Africa's leading destination for upstream investment for two consecutive years.
The president highlighted the Host Communities Development Trusts, saying more than 170 host-community trusts have been funded to support projects in education, healthcare, and other areas. He emphasized that the development of host communities is particularly significant because sustainable peace in oil-producing areas depends on fairness, inclusion, and shared benefits. Tinubu also stressed that the administration is determined to use petroleum resources to support a broader economy driven by agriculture, manufacturing, digital, and creative industries.
Tinubu charged the NUPRC to work closely with sister agencies to ensure investors are not subjected to conflicting requirements or unnecessary delays. He also urged operators to comply with their work programs, local-content obligations, environmental standards, and commitments to host communities in return for government incentives. The president emphasized that the government will uphold the rule of law, sanctity of contracts, and accountability as key pillars for sustaining investor confidence in the sector.
The president also mentioned that the administration will pursue an energy transition strategy suited to Nigeria's needs, with greater gas supply for power, industry, and clean cooking, alongside expansion of renewable energy. He congratulated the NUPRC on its fifth anniversary, urging its management and staff to sustain the commitment, integrity, and sense of purpose required to consolidate gains in the upstream sector. Tinubu's statement underscores the government's efforts to revitalize the oil and gas sector and attract significant investment.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was established under the Petroleum Industry Act (PIA) 2021, and its fifth anniversary marks a significant milestone in the country's efforts to reform the oil and gas sector. With the new incentive tax order and the PIA, the government aims to create a more attractive investment environment and unlock new opportunities for growth in the sector. The president's statement highlights the government's commitment to transparency, accountability, and sustainable development in the oil and gas sector.
Key points
- President Bola Tinubu announces that Nigeria's recent oil and gas sector reforms will unlock up to $50 billion in new deep offshore investments.
- The Deep Offshore Oil and Gas Projects Incentive Tax Order 2026 aims to provide clear and published investment criteria to attract investors.
- The Petroleum Industry Act (PIA) 2021 has provided a strong foundation for investment in the oil and gas sector by establishing clear rules and a predictable regulatory framework.
