Tinubu's Tax Incentives May Unlock $50 Billion, Boost Nigeria's Oil Production

Nigeria's upstream petroleum industry may see a significant boost in production and investment following the introduction of President Bola Tinubu's Deep Offshore Oil and Gas Project Incentives (Tax Remission) Executive Order 2026, also known as Executive Order 9.

The executive order aims to improve the economics of deep offshore oil and gas projects through tax incentives and a more predictable investment framework. According to Enorense Amadasu, Executive Commissioner for Development and Production at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), this policy has the potential to unlock about $50 billion in fresh investments and increase Nigeria's crude oil and condensate production by nearly one million barrels per day within the next four to five years.

Nigeria currently produces about 1.7 million barrels per day of crude oil and condensate, with deep offshore fields accounting for about 24% of oil production and 19% of gas output. Nine projects already have approved Field Development Plans, with the next major step being Final Investment Decisions by the companies involved.

The new incentive is expected to encourage international oil companies and other investors to move faster on these decisions. Amadasu stated that it will also support increased reserves, technology and skills transfer, job creation, and the development of Nigeria's offshore petroleum industry.