The Nigerian National Petroleum Company Limited (NNPC Ltd.) has commended the recent
signing of the Deep Offshore Oil and Gas Projects Incentives
(Tax Remission) Order, 2026, by President Bola tinubu, describing it as a landmark reform that significantly
enhances Nigeria’s competitiveness for deep offshore investment and strengthens
the nation’s pathway towards achieving its 3 million barrels of oil per day (MMbopd)
production ambition by 2030.
The new Order establishes a transparent, predictable and globally competitive fiscal
framework for qualifying greenfield deep offshore developments. It also provides the
certainty required to unlock long-term capital, accelerate Final Investment Decisions
(FIDs), and maximise value from Nigeria’s offshore resources according to a press statement by the NNPC.
The framework, which reinforces Nigeria’s position as one of the world’s attractive
destinations for deep offshore oil and gas development the statement also noted is expected to unlock over
US$50 billion in new investments, including major projects starting with Bonga
South-West which was approved in March 2026, and the Zabazaba and Owowo Deep
Offshore projects. Bonga South West is expected to be the first FID on a Nigeria deepwater Production Sharing Contract asset since 2008.
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd., Engr.
Bashir Bayo Ojulari, described the Order as one of the most significant policy
interventions for the 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. Fiscal certainty is a critical driver of
investment decisions, and this framework provides the additional clarity the industry
has long sought.”
He added: “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. It strengthens our confidence in achieving our
strategic production ambition of 3 MMbopd while creating greater value for our
shareholders and the Nigerian economy.
The GCEO noted that recent reforms across the petroleum sector have already
stimulated more than US$34 billion in new investment commitments. The Deep
Offshore Incentives Order is expected to build on that momentum by enabling timely
FIDs on strategic offshore developments.
While thanking President Bola Ahmed Tinubu, GCFR, for his relentless leadership
and unwavering commitment to creating an enabling environment for investment
and sustainable growth in Nigeria’s energy sector through several Presidential
Executive Orders which have strengthened the nation’s oil and gas sector, Ojulari said
the milestone reinforces NNPC Limited’s commitment to driving sustainable
production growth, attracting responsible investment, strengthening Nigeria’s
energy security and delivering long-term value to the Federation.
