Nigeria Offers $50 Billion Tax Breaks for Deepwater Oil Projects

Nigeria has announced sweeping tax incentives to attract up to $50 billion in investment for deepwater oil and gas projects, aiming to revive stalled capital-intensive projects.

The incentives, signed by President Bola Tinubu on August 6, grant tax credits of as much as $11.50 per barrel of crude for new deepwater developments, starting with Shell Plc's Bonga Southwest Aparo project.

The order also provides a credit of up to $8 per barrel of oil equivalent for non-associated gas projects and will remain in place until December 31, 2029.

This move is part of Tinubu's efforts to revive Nigeria's oil and gas industry, which has been hampered by crude theft, pipeline vandalism, and aging infrastructure.