Nigeria is targeting a revival of deepwater investment with new tax incentives designed to unleash up to $50 billion in delayed oil and gas projects.
Bola Ahmed Tinubu, Nigeria’s President, has approved a deepwater offshore investment framework to unlock up to $50 billion in new investment. This reform is crafted to replace project-by-project negotiations with a transparent investment framework and restart the African nation’s large, capital-intensive offshore developments that have remained stalled for decades.
The reform is said to establish a transparent, rules-based investment framework capable of supporting the next generation of deep offshore developments, beginning with the approximately $10 billion Bonga South West project, while strengthening the country’s competitiveness for globally mobile investment capital.
Olu Arowolo-Verheijen, President’s Special Adviser on Oil and Gas, emphasized: “Projects qualifying under the framework will maximise execution within Nigeria wherever commercially and technically feasible, strengthening domestic engineering, fabrication, marine logistics, technical services and project management.
“The objective is not only to increase investment and production, but also to create skilled jobs, deepen local supply chains and position Nigeria as Africa’s regional hub for deep offshore project execution.”