Nigeria: Explainer - What Tinubu's New Deep Offshore Tax Incentives Mean for Nigeria

What the report says

President Bola Tinubu has approved a new tax incentive framework for deep offshore oil and gas projects in Nigeria, according to Premium Times, which was republished by AllAfrica. The policy, called the Deep Offshore Oil and Gas Tax Credit Order, 2026, is intended to draw large-scale investment into the sector, revive projects that have been delayed for years, and support higher crude output.

The reported aim is to make major offshore developments more commercially viable by giving investors clearer and more predictable tax terms. The government says the framework could help unlock up to $50 billion in fresh investment, with the Bonga South West-Aparo project cited as a major example. It also sets a window for existing deep offshore leases to reach final investment decision by 31 December 2029 in order to qualify for the full incentive.

The article says the policy is part of a broader effort by the Tinubu administration to remove barriers to oil and gas investment. It comes amid renewed interest from international oil companies, including Shell, and shortly after Nigeria completed its 2025 licensing round. The government argues that lower uncertainty and better project economics could help move stalled fields toward construction and production.

Beyond attracting capital, the administration says it wants the projects to create jobs, support local suppliers, and build technical skills in Nigeria. As background, deep offshore oil projects are typically expensive and complex, so governments often use fiscal incentives to compete for long-term investment.