Nigerian president approves framework to unlock $50B deep offshore investment

Nigerian President Bola Ahmed Tinubu has approved a new investment framework that aims to unlock up to $50 billion in deep offshore oil and gas investments and revive major projects that have been stalled for years.

The reform replaces the previous project-by-project negotiation system with a transparent, rule-based framework aimed at attracting long-term capital to Nigeria's deep offshore sector.

Bayo Onanuga, the president's spokesperson, said in a statement on Tuesday evening that the approval also allows the Nigerian National Petroleum Company (NNPC) Limited, the government's nominated counterparty under the production sharing contracts (PSCs), to proceed with the necessary amendments to eligible PSCs to implement the framework.

Olu Verheijen, special adviser to the president on oil and gas, added in the statement that the reform would also strengthen Nigerian participation in the offshore oil industry.

"A defining feature of this reform is its emphasis on Nigerian industrial capability," Verheijen said.

The framework is expected to provide greater certainty for investors by establishing clear rules and incentives instead of requiring companies to negotiate separate fiscal arrangements for individual projects.

The reform comes as Nigeria seeks to increase oil production, attract fresh foreign investment and revive major developments that have been delayed by regulatory and commercial uncertainties.

The government said the framework would help position Nigeria as a more competitive destination for deepwater oil and gas investment while supporting domestic industrial development.