Abuja:President Bola Tinubu has announced that Nigeria’s recent reforms in the oil and gas sector are expected to attract up to $50 billion in new deep offshore investments.
According to the News Agency of Nigeria, Tinubu, represented by Vice-President Kashim Shettima, made this statement during the fifth anniversary celebration of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja. He emphasized that the Deep Offshore Oil and Gas Projects Incentive Tax Order 2026 would provide clear investment criteria, replacing previous uncertainties and promoting projects within Nigeria.
The President highlighted that the incentive is anticipated to unlock significant investments, beginning with the Bonga South-West project. This move aims to develop Nigeria’s substantial yet untapped deep offshore oil prospects, reinforcing the country’s commitment to long-term investment with transparent terms.
Tinubu further stated that the Petroleum Industry Act (PIA) has laid a robust foundation for investment by establishing clear rules and a predictable regulatory framework, enhancing participation from host communities. He noted progress in restoring security in oil-producing regions, making Nigeria a leading destination for upstream investment in Africa for two consecutive years.
Additionally, the President mentioned that over 170 host-community trusts had been funded to support projects in education, healthcare, and other areas. This development is crucial for maintaining sustainable peace in oil-producing areas through fairness and shared benefits.
President Tinubu reiterated the government’s dedication to using petroleum resources to bolster a broader economy, including agriculture, manufacturing, and the digital and creative industries. The oil and gas sector will continue to supply gas for power and industries, creating opportunities for local engineers and service companies.
He urged the Nigerian Upstream Petroleum Regulatory Commission to ensure effective implementation of policy reforms, stressing the importance of predictable and transparent regulatory processes. Tinubu also called for operators to meet their commitments to local-content obligations and environmental standards in exchange for government incentives.
The government, he assured, would maintain the rule of law and uphold contract sanctity to sustain investor confidence. Tinubu also highlighted plans for an energy transition strategy tailored to Nigeria’s needs, focusing on increased gas supply and renewable energy expansion.
In conclusion, the President congratulated the NUPRC on its anniversary and encouraged continued dedication to consolidating the gains achieved in the upstream sector.