By Ayomide Otitoju
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 it as a major reform that could boost investment in the sector and support Nigeria’s ambition to increase crude oil production to 3 million barrels per day by 2030.
NNPC Ltd. said the new Order provides a transparent, predictable and globally competitive fiscal framework for qualifying greenfield deep offshore projects.
According to the company, the framework is expected to provide greater certainty for investors, unlock long-term capital, accelerate Final Investment Decisions (FIDs) and maximise the value of Nigeria’s offshore oil and gas resources.
The Order is expected to unlock more than $50 billion in new investments, including major developments such as Bonga South-West, Zabazaba and Owowo.
Bonga South-West, which was approved 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 Ltd. Group Chief Executive Officer, Bashir Bayo Ojulari, described the Order as one of the most significant policy interventions in Nigeria’s upstream sector in recent years.
Ojulari said the reform would send a strong signal to international investors that Nigeria was committed to creating a stable and competitive environment for deep offshore development.
He said fiscal certainty remained a major factor in investment decisions and that the new framework provided the clarity needed by investors.
“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,” Ojulari said.
He added that the policy would strengthen the company’s confidence in achieving its 3 million barrels per day production ambition while creating greater value for its shareholders and the Nigerian economy.
Ojulari said recent reforms in the petroleum sector had already generated more than $34 billion in new investment commitments.
He expressed optimism that the Deep Offshore Incentives Order would build on the momentum by facilitating timely FIDs on strategic offshore projects.
The NNPC Ltd. chief executive also commended President Bola Ahmed Tinubu for what he described as sustained efforts to create an enabling environment for investment and long-term growth in Nigeria’s energy sector.
He said the latest reform reinforced NNPC Ltd.’s commitment to increasing sustainable production, attracting responsible investment, strengthening energy security and delivering long-term value to the Federation.
