President Tinubu's new deep offshore investment framework, game changer for Nigeria's oil sector - TDF

The Democratic Front (TDF) has endorsed President Bola Tinubu’s approval of a landmark investment framework for the nation’s deep offshore oil field, describing it as a bold move to optimise Nigeria’s vast oil potentials.

In a statement signed by its Chairman Danjuma Muhammad and Secretary Wale Adedayo, the group said it was heartwarming that the move would unlock an estimated $50bn investment in the oil sector.

The statement read: “President Bola Tinubu’s decision to unlock $50 billion in new investment in the deep offshore oil fields underscores his determination to consolidate the gains of his ongoing reforms in the oil sector.

“It is important to recall that the deep offshore oil fields, which holds greater prospect for crude oil production in Nigeria than the marginal fields were largely dormant due to inability to attract investors under previous administrations.

“President Tinubu’s interventions and deft management of Nigeria’s oil resources since assuming office has triggered a flurry of investments and divestments from marginal fields to deep offshore operations.

“We note that one of the major strides in the President’s drive for private capital infusion into the deep offshore oil fields, was the Final Investment Decision (FID) by Shell Petroleum PLC, for the $5bn Bonga North deepwater project in December 2024 followed by the FID on $10bn Bonga South West project which is in the offing.

“Rather than the previous slow project-by-project negotiation framework, the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026 provides for more transparent eligibility criteria, clear implementation processes and a durable investment architecture for investors on a long-term basis.

“For us, the latest Presidential initiative
Is a bold move geared towards galvanizing concrete interest in Nigeria’s large capital-intensive offshore oil fields development.

“We are convinced that this move by the President would enhance Nigeria’s competitiveness in global oil investment, and will further expand the base of the country’s national revenue earnings.

“We laud the President for bringing his very rich professional experience to bear on governance thereby attracting major multinational oil investorsand infusing global best practices, transparency, and accountability into the hitherto sluggish oil sector.”

TDF is convinced that on President Tinubu’s watch, the country will continue to be Africa’s most viable investment hub in the oil and gas sector.