President Bola Tinubu says Nigeria’s latest reforms in the oil and gas sector are designed to unlock up to $50bn in new deep offshore investment, beginning with the Bonga South-West project.
Tinubu, represented by Vice-President Kashim Shettima, spoke on Tuesday in Abuja at the fifth anniversary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The President said the Deep Offshore Oil and Gas Projects Incentive Tax Order 2026 was designed to provide clearer investment conditions for projects that had remained undeveloped for years.
He said the order had replaced uncertainty with “clear, published criteria” and required projects to be executed in Nigeria where applicable.
“It is designed to unlock up to 50 billion dollars in new investment, beginning with the Bonga South-West project,” Tinubu said.
He added, “Nigeria is open for long-term investment and the terms are clear.”
Tinubu said some of the country’s largest oil prospects were located in the deep offshore, making the new incentives important for increasing investment and production.
He said the Petroleum Industry Act had provided the foundation for reform by establishing clearer rules, a more predictable regulatory framework and greater participation by host communities.
The President also said improved security in oil-producing areas, competitive licensing processes and regulatory reforms had helped attract investors back to Nigeria.
According to him, Nigeria had ranked as Africa’s leading destination for upstream investment for two consecutive years.
Tinubu said the government had also funded more than 170 Host Communities Development Trusts, with projects covering areas including education and healthcare.
He said sustainable peace in oil-producing communities depended on fairness, inclusion and shared benefits.
The President said the government would continue to use petroleum resources to support a broader economy driven by agriculture, manufacturing and the digital and creative sectors.
He said the oil and gas industry would also provide gas for power and industries while creating opportunities for Nigerian engineers, fabricators and indigenous service companies.
Tinubu charged the NUPRC to maintain transparent and predictable regulatory processes, reduce delays and work with other government agencies to prevent conflicting requirements for investors.
He also urged oil operators to comply with approved work programmes, local-content obligations, environmental standards and commitments to host communities.
The President said his administration would uphold the rule of law, sanctity of contracts and accountability as key elements of efforts to sustain investor confidence.
On energy transition, Tinubu said the government would pursue a strategy suited to Nigeria’s needs, with emphasis on expanding gas supply for power, industry and clean cooking alongside renewable energy.
Minister of State for Petroleum Resources, Oil, Heineken Lokpobiri, said Nigeria still needed more investment, additional licensing rounds and intensified exploration to maximise its estimated 37 billion barrels of crude oil reserves.
He said crude production had risen to about 1.7 million barrels per day but urged NUPRC to continue removing regulatory bottlenecks that could discourage investment.
The NUPRC Governing Board Chairman, Senator Magnus Abe, credited the commission’s progress to the reform agenda of the Tinubu administration and its support for regulatory independence.
Chairman of the Senate Committee on Gas, Senator Jarigbe Agom Jarigbe, said the reforms under the PIA had improved transparency, regulatory certainty and investment prospects in the sector.
The anniversary also featured awards to former Directors of the Department of Petroleum Resources, which was transformed into NUPRC under the PIA, for their contributions to reforms in Nigeria’s upstream petroleum industry.
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