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 policy as a major step towards attracting fresh investment into Nigeria’s offshore petroleum sector.
NNPC said the new fiscal framework would improve Nigeria’s competitiveness in deep offshore oil and gas development by providing investors with greater certainty and predictability, while supporting the government’s ambition to raise crude oil production to three million barrels per day by 2030.
According to the company, the order is expected to unlock more than $50 billion in new investments and accelerate Final Investment Decisions (FIDs) on major offshore projects.
Among the projects expected to benefit from the new framework are Bonga South West, Zabazaba and Owowo Deep Offshore projects.
Bonga South West, which received approval in March 2026, is expected to become the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008.
Speaking on the development, NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, described the tax order as one of the most significant policy interventions in Nigeria’s upstream sector in recent years.
“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development. Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought,” Ojulari said.
He said the policy aligned with NNPC’s strategy of protecting existing production, accelerating near-term growth and attracting investment into high-value petroleum assets.
“For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets. It strengthens our confidence in achieving our strategic production ambition of 3 MMbopd while creating greater value for our shareholders and the Nigerian economy,” he added.
Ojulari said recent reforms in the petroleum sector had already generated more than $34 billion in new investment commitments, adding that the new deep offshore incentives would help sustain the momentum and facilitate timely investment decisions on strategic projects.
He commended President Bola Ahmed Tinubu for what he described as his continued efforts to create an enabling environment for investment and sustainable growth in Nigeria’s energy sector through a series of executive orders targeting the oil and gas industry.
NNPC said the new framework would further support its efforts to increase production, strengthen energy security, attract responsible investment and create long-term value for the Nigerian economy.
