… New Incentive Order Poised to Accelerate FIDs, Boost Nigeria’s Oil Output to 3 Million Barrels Per Day
Rashidat O. Okunlade Writes | Lagos
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has thrown its weight behind the Federal Government’s newly signed Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, describing it as a landmark reform that could unlock more than $50 billion in fresh investments and accelerate the nation’s journey toward its 3 million barrels per day production target by 2030.
The new Order establishes a transparent, predictable, and globally competitive fiscal framework for qualifying greenfield deep offshore developments, providing the certainty required to unlock long-term capital and accelerate Final Investment Decisions (FIDs). Industry watchers say the framework could fundamentally reshape Nigeria’s deepwater landscape, which has remained largely stagnant for nearly two decades.
First FID Since 2008
At the heart of the new incentives is the Bonga South West project, which secured presidential approval in March 2026 and is expected to be the first FID on a Nigerian deepwater Production Sharing Contract asset since 2008. The project, operated by Shell with all International Oil Companies in Nigeria as partners, is estimated to attract about $20 billion in Foreign Direct Investment.
The Bonga Southwest Aparo project is expected to create over 5,000 direct and indirect jobs upon completion, deliver 150,000 barrels per day of crude oil, and produce 140 million standard cubic feet of gas daily. For nearly two decades, the project remained stalled amid fiscal uncertainties and contractual disputes.
Transformative Reform
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, described the Order as one of the most significant policy interventions for the 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,” Ojulari said. “Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought”.
He added that the Order aligns directly with NNPC’s strategy of protecting its existing production base, accelerating near-term growth, and attracting new investment into high-value assets.
Building on Reform Momentum
Ojulari noted that recent reforms across the petroleum sector have already stimulated more than $34 billion in new investment commitments. The Deep Offshore Incentives Order is expected to build on that momentum by enabling timely FIDs on strategic offshore developments, including the Zabazaba and Owowo Deep Offshore projects.
The GCEO appreciated President Bola Ahmed Tinubu for what he described as “relentless leadership and unwavering commitment” to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector through several Presidential Executive Orders.
“This milestone reinforces NNPC Limited’s commitment to driving sustainable production growth, attracting responsible investment, strengthening Nigeria’s energy security and delivering long-term value to the Federation,” the company said in a statement signed by Chief Corporate Communications Officer Andy Odeh.
Reported by: Rashidat Olushola Okunlade
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