Nigeria Targets $50bn Offshore Oil Funds As Tinubu Okays With New Investment Rules

President Bola Tinubu has approved a new set of rules aimed at bringing billions of dollars back into Nigeria’s offshore oil industry, an area that has seen little new investment in years.

The government said the new framework could attract up to $50 billion in investment. It replaces the old system, where the government had to negotiate separate deals for every single project. Now, there is one clear set of rules that any qualifying offshore project can use.

The new rules take legal effect through an order called the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.

The first project to benefit will be Bonga South West, a roughly $10 billion offshore development. But officials say the rules are not just for this one project — they are designed to cover many similar offshore projects going forward.

The idea for the new framework came after a meeting between President Tinubu and Wael Sawan, the head of oil company Shell. Tinubu asked his team to find ways to get investment moving in Nigeria’s offshore oil sector. Instead of making a deal for just one company, the government decided to create rules that would work for the whole industry.

NNPC Limited, Nigeria’s state oil company, has also been given the go-ahead to update existing contracts so that qualifying projects can use the new rules.

Government officials said the new rules will also help create jobs in Nigeria.

The president’s adviser on oil and gas, Olu Arowolo-Verheijen, said companies will be expected to do as much of the work as possible inside Nigeria — things like engineering, building equipment, and shipping services — as long as it makes business sense.

She said this should create more skilled jobs for Nigerians and help local businesses grow, while making Nigeria a top destination in Africa for offshore oil projects.

Nigeria has large amounts of oil and gas offshore, but many big projects have been stuck for years. Investors have often held back because they were unsure about Nigeria’s rules and how stable they would be over time.

The new framework was put together after months of talks between the presidency, key government ministries, NNPC, oil regulators, and oil companies. The government is hoping that having clear, stable rules — not just tax breaks — will convince investors to commit their money.

President Tinubu explained the thinking behind the move: “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.”

The next thing to watch is whether Shell moves ahead with a final decision on Bonga South West, and whether other oil companies follow with similar offshore projects of their own.