Tinubu’s offshore tax order to unlock $50bn, add 1mbpd – NUPRC
August 19, 2026 8:37 pm
Oritsemeyiwa Eyesan
President Bola Tinubu’s new tax incentive for deep offshore oil and gas projects could unlock about $50bn in investments and add nearly one million barrels per day of crude oil and condensate to Nigeria’s production within the next four to five years, the Nigerian Upstream Petroleum Regulatory Commission has said.
The Executive Commissioner for Development and Production at the NUPRC, Enorense Amadasu, disclosed this during an interview on NTA where he represented the Commission Chief Executive, Oritsemeyiwa Eyesan.
According to a statement issued on Wednesday by the NUPRC’s Head of Media and Corporate Communications, Eniola Akinkuotu, Amadasu said the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Executive Order, 2026, recently signed by Tinubu, could accelerate investment decisions on major projects that have already received regulatory approvals.
The statement read, “The Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026 recently signed by President Bola Tinubu has the potential not only to unlock $50bn in investments but can also create an additional one million barrels per day of crude oil and condensate from deep offshore fields”
The executive order, also known as Executive Order 9, is designed to improve the economics of deep offshore oil and gas projects by providing tax incentives and a more predictable framework for investors.
Amadasu said the reform could open a new phase of investment in Nigeria’s offshore petroleum industry, where projects typically require billions of dollars and take several years to move from discovery to production.
“We are on the right path, all thanks to Mr President. It will be a huge leap. As of today, we have mined over 4.6 billion barrels from deep offshore assets. In cargo terms, that is about 5,000 tankers,” he said.
Nigeria currently produces about 1.7 million barrels per day of crude oil and condensate, according to Amadasu, with deep offshore fields accounting for about 24 per cent of the country’s oil production and 19 per cent of gas output.
He said the new framework would create greater opportunities for investment and support the next generation of deep offshore projects.
The NUPRC executive commissioner explained that nine projects had already received approved Field Development Plans, leaving the companies to take Final Investment Decisions before development could commence.
“So, where will these volumes be coming from? Nine of these projects have approved FDPs, so the next step expected is the FID in the near to midterm. The $10bn Bonga South will come in 2027, and within the next four to five years, we are expecting almost an additional one million barrels per day,” Amadasu stated.
The potential one million barrels per day addition would represent a major increase to Nigeria’s current production and could significantly alter the country’s oil revenue outlook if the projects proceed as planned.
Amadasu said the executive order would encourage international oil companies and other investors to move faster in taking Final Investment Decisions on the approved projects.
He explained that the reform established a transparent and rules-based investment framework capable of supporting the next generation of deep offshore developments.
The order is particularly significant because deep offshore projects are among the most capital-intensive ventures in the petroleum industry. They require huge investments in drilling, floating production facilities, subsea infrastructure and specialised logistics, making fiscal terms and regulatory certainty critical to investment decisions.
Amadasu added that the anticipated projects could create opportunities across other sectors of the economy, particularly Nigeria’s marine and logistics industries.
According to him, the country would need to expand its marine and logistics capacity to support the volume of offshore projects expected under the new investment framework.
“It aims to make Nigeria the regional hub for deep offshore projects,” Amadasu said.
He added that other expected benefits included an increase in Nigeria’s oil and gas reserves, technology and skills transfer, and the creation of new jobs.
PUNCH Online reports that Nigeria has been seeking to revive investment in its deep offshore petroleum sector as it targets higher crude oil production and seeks to reverse years of underinvestment in major upstream projects.
The signing of Deep Offshore Oil and Gas Project Incentives forms part of the Tinubu administration’s broader effort to improve the competitiveness of Nigeria’s oil and gas fiscal regime following the Petroleum Industry Act.
With nine projects already holding approved Field Development Plans, the success of the new incentive will largely depend on whether it can translate regulatory approvals into Final Investment Decisions and eventually into new barrels.
For Nigeria, the stakes are substantial: if the projected projects move ahead, the country could secure billions of dollars in fresh investment and add almost one million barrels of crude oil and condensate daily to its production over the next five years
Damilola Aina is a journalist at Punch Newspapers with over five years of experience covering energy, business, investment, infrastructure, and property sectors. He specializes in producing well-researched and insightful reports that inform readers and provide clarity on complex topics. Damilola’s work demonstrates practical newsroom experience, editorial insight, and a strong commitment to accurate and engaging journalism.
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