Eniola Yekini
President Bola Tinubu has said Nigeria can no longer afford to leave major energy opportunities undeveloped, adding that this is the reason his administration has continued to introduce policy directives and incentives aimed at unlocking stalled investments in Nigeria’s oil and gas sector.
According to the President, the Order was part of efforts to attract fresh capital into the upstream sector, and is expected to begin with the approximately $10bn Bonga South West project.
He said the Order was part of a broader effort by his administration to remove the constraints that had inhibited investment, production and value creation in the nation’s oil and gas industry.
This was contained in a post, explaining his decision to sign the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which is expected to provide a framework capable of unlocking up to $50bn in deep offshore investment.
According to the president, investors committing billions of dollars to projects with long development periods require predictable terms before taking final investment decisions.
He stated that the new framework would provide that certainty by giving existing deep offshore leases until 31 December 2029, to reach a final investment decision and qualify for the full standard incentive. Tinubu said: “For too long, some of our biggest offshore opportunities have remained stalled.
We cannot afford to leave that opportunity beneath our waters for another decade. Capital moves, countries compete for it, and investors committing billions of dollars over many years need certainty.
“We are providing that certainty, with a clear window for existing deep offshore leases to reach final investment decision by 31 December 2029 and qualify for the full standard incentive. “This is the 10th major policy directive of my administration targeted specifically at the oil and gas sector. We have been deliberate about removing the constraints holding back investment, production and value creation.”
He added: “I want the work to come home to Nigeria. I want our engineers involved, our fabrication yards working, Nigerian marine and technical service companies securing contracts, and our young people acquiring world-class skills. “For projects accessing the supplementary incentives, the order requires project activities to be performed in Nigeria, subject to clearly defined exceptions and Nigerian content requirements.”