Deep offshore tax order to unlock $50bn investment, boost oil output–Ojulari

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has welcomed the Federal Government’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, describing it as a major reform capable of unlocking fresh investment and accelerating Nigeria’s ambition to produce three million barrels of crude oil per day by 2030.

NNPC said the new fiscal framework would provide greater certainty and predictability for qualifying greenfield deep offshore developments, helping to attract long-term capital and accelerate Final Investment Decisions (FIDs) on major projects.

According to the national oil company, the incentives could unlock more than $50 billion in new investments in Nigeria’s deep offshore sector, including the Bonga South-West, Zabazaba and Owowo projects.

Bonga South-West, approved in March 2026, is expected to become the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008.

Group Chief Executive Officer of NNPC Ltd., Bashir Bayo Ojulari, described the new order as one of the most significant policy interventions in Nigeria’s upstream sector in recent years.

“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development,” Ojulari said.

He said fiscal certainty remained critical to investment decisions, adding that the new framework provides the clarity investors have long sought.

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“For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets,” he added.

Ojulari said the policy would strengthen the company’s confidence in achieving the three million barrels per day production target while creating additional value for shareholders and the Nigerian economy.

He disclosed that recent reforms across the petroleum sector had already generated more than $34 billion in new investment commitments.

The GCEO expressed optimism that the Deep Offshore Incentives Order would build on the momentum by facilitating timely FIDs on strategic offshore projects.

Industry analysts say the reform could prove significant for Nigeria’s upstream sector because deepwater projects require substantial upfront capital and long development timelines.

Analysts noted that a more predictable fiscal regime could improve project economics, encourage international oil companies to commit capital and help Nigeria reverse years of declining offshore investment.

The policy could also support government revenue over the longer term by increasing crude production, although analysts said the actual impact would depend on how quickly projects move from approval to FID and eventual production.

NNPC said the reform reinforces its commitment to increasing sustainable oil production, attracting responsible investment, strengthening energy security and delivering long-term value to the Federation.

The company also commended President Bola Ahmed Tinubu for what it described as sustained efforts to create an enabling environment for investment and growth in Nigeria’s oil and gas industry.