Presidential Order Unlocks $50 Billion Deep Offshore Investment with Tax Remissions
President Bola Ahmed Tinubu has enacted the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a significant policy move aimed at revitalising Nigeria’s deep offshore oil and gas sector. This executive action, announced by the President via his official X account on Thursday, is poised to attract substantial investment and provide a clearer regulatory framework for future projects.
The newly signed Order is projected to unlock an estimated $50 billion in investment for Nigeria’s oil and gas industry. This substantial influx of capital is expected to commence with the Bonga South West project, a significant undertaking valued at approximately $10 billion. The Order establishes clear and predictable terms, crucial for fostering a new generation of deep offshore investments.
President Tinubu highlighted the Order’s potential, stating, “The framework has the potential to unlock up to $50 billion in investment, beginning with the approximately $10 billion Bonga South West project.” Furthermore, the Order provides a defined pathway for existing deep offshore leases, allowing companies to reach Final Investment Decision by December 31, 2029, and subsequently qualify for the full standard incentives stipulated within the Order. This provision offers critical certainty for ongoing and future developments.
This latest directive marks the tenth major policy initiative from the Tinubu administration specifically targeting the oil and gas sector, underscoring a strategic focus on this vital economic engine. It follows the Federal Government’s implementation of Executive Order 9 in March of this year, which addressed the remittance of oil revenue to the Federation Account Allocation Committee.
The Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, is expected to be a pivotal instrument for legal counsel, compliance officers, and corporate executives involved in the sector. Investors and business leaders will find the clarified incentive structure and investment window particularly attractive, potentially reshaping strategic planning and capital allocation for deep offshore ventures. The Order’s emphasis on predictability and clear terms is a welcome development for all stakeholders navigating the complexities of Nigeria’s energy landscape.
