Deep Offshore Incentives Set to Unlock $50bn Investment, Drive Nigeria Towards 3mbpd Target

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 the measure as a major policy intervention capable of unlocking fresh investments and accelerating oil production growth.

According to NNPC Ltd., the new fiscal framework is expected to attract more than $50 billion in new investments into Nigeria’s deep offshore oil and gas sector, while supporting the country’s ambition to raise crude oil production to three million barrels per day (MMbopd) by 2030.

The Order establishes what the company described as a transparent, predictable and globally competitive fiscal regime for qualifying greenfield deep offshore projects.

NNPC said the framework would provide investors with greater fiscal certainty, helping to unlock long-term capital and accelerate Final Investment Decisions (FIDs) on major offshore developments.

Among the projects expected to benefit from the renewed investment momentum are Bonga South-West, Zabazaba and Owowo Deep Offshore projects.

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

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

Ojulari said the reform sends a strong signal to international investors that Nigeria is committed to creating a stable, competitive and investment-friendly environment for deep offshore development.

He stressed that fiscal certainty remains a critical factor in investment decisions, adding that the new framework provides the clarity the industry has long sought.

According to him, the incentives align with NNPC Ltd.’s strategy of protecting existing production, accelerating near-term growth and attracting fresh investments into high-value assets.

He expressed confidence that the policy would strengthen the company’s ability to pursue its 3 MMbopd production ambition, while creating greater value for shareholders and the Nigerian economy.

The NNPC chief executive further disclosed that reforms undertaken across the petroleum sector had already generated more than $34 billion in new investment commitments.

He said the Deep Offshore Incentives Order would build on the momentum by facilitating timely FIDs on strategic offshore developments.

Ojulari also commended President Bola Ahmed Tinubu for his leadership and commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector, particularly through a series of Presidential Executive Orders aimed at strengthening the oil and gas industry.

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