Nigeria approves deep-water oil framework to attract $50 billion
Nigeria's president approved a new deep-water oil and gas investment framework, potentially unlocking $50 billion in projects.
Nigerian President Bola Tinubu has approved a new regulatory and fiscal framework for deep-water oil and gas projects, a move his office says could attract up to $50 billion in investment and restart several long-delayed developments.
The framework, announced on Tuesday, replaces project-by-project negotiations with a standardized, rules-based system. A new tax remission order is designed to provide greater investor certainty and improve Nigeria's competitiveness in the global race for oil capital, according to presidential spokesperson Bayo Onanuga.
The government expects the framework to support a new wave of offshore projects, beginning with Shell's long-stalled Bonga South West development. That project, valued at $10 billion, is now expected to reach a final investment decision in 2027.
The approval also allows state-owned oil company NNPC Ltd to amend eligible production-sharing contracts with producers. Qualifying projects will be required to prioritize local execution where feasible, a condition aimed at boosting domestic jobs and supply chains.
Nigeria has struggled in recent years to attract new upstream investment amid regulatory uncertainty, high project costs, and stiff competition from other oil-producing nations. The new framework is intended to address those hurdles and signal a more predictable environment for major capital commitments.