Nigeria aims to attract up to $10 billion in new investments for deep-water gas exploration through a new policy framework approved by the Federal Executive Council. President Bola Tinubu announced that the framework will soon be presented to the National Assembly for legislative approval.
The policy aims to expedite the development of Nigeria’s offshore gas sector, where approximately 67% of resources remain untapped. Olu Verheijen, Tinubu’s special adviser, stated that the framework includes tax credits for new investments and a gas-production allowance for greenfield projects in onshore and shallow-water areas that begin production by January 1, 2029.
Verheijen emphasized the potential to unlock between $5 billion and $10 billion in new investments in the near to medium term. Once the framework becomes law, it is expected to accelerate natural gas development, reduce reliance on fossil fuels for transportation, and enhance the country’s energy security.
Global investments in deep-water oil and gas projects are projected to reach around $90 billion in the coming years, indicating a significant opportunity for Nigeria. “This is the pool of funds that our reforms are targeting,” Verheijen noted.
Since taking office in May 2023, President Tinubu has initiated reforms that have reportedly attracted over $30 billion in foreign direct investment. However, these policy changes have also contributed to a cost-of-living crisis in Africa’s most populous nation, leading to protests.
