Overview

The document is an official gazette of the Federal Republic of Nigeria, publishing the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. The Order is issued under the authority of the Nigeria Tax Administration Act No. 5 of 2025 and the Petroleum Industry Act 2021, and is signed by President Bola Ahmed Tinubu. It establishes a framework of tax incentives for deep offshore oil and gas projects to encourage investment and development in Nigeria's deep offshore sector. The Order provides for a Standard Production Tax Credit (Standard PTC) applicable to deep offshore oil and non-associated gas development, with specific conditions for existing leases where a Final Investment Decision (FID) is made between the effective date (6th August 2026) and 31st December 2029, and for future leases awarded after the effective date. It also introduces Supplementary Production Tax Credits and a Profit Oil Reset mechanism, subject to eligibility criteria and application processes. The Order includes provisions for the calculation of production tax credits, claw back and recovery of incentives, exclusion of certain allowances, handling of surplus credits, and issuance of implementation guidelines. The incentives are designed to lower the effective tax rate by applying a percentage reduction to the hydrocarbon tax and companies income tax for qualifying projects.

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