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Deep offshore incentive order will accelerate investment, production growth — NNPC

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The Nigerian National Petroleum Company Limited (NNPC Ltd) has applauded the Federal Government’s signing of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, describing it as a landmark reform that will enhance Nigeria’s competitiveness for deep offshore investment.

President Bola Tinubu approved the order on Tuesday as part of efforts to attract large-scale investments into Nigeria’s deep offshore oil and gas sector.

In a statement issued on Thursday, NNPC said the new order establishes a transparent, predictable, and globally competitive fiscal framework for qualifying greenfield deep-offshore developments.

The company said the framework would provide the certainty required to unlock long-term capital, accelerate Final Investment Decisions (FIDs) and maximise value from Nigeria’s offshore resources.

The order is expected to support Nigeria’s ambition of increasing crude oil production to 3 million barrels per day (MMbopd) by 2030.

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Framework to unlock offshore investments

President Tinubu, while announcing the approval on Tuesday, said the new incentive framework could unlock up to $50 billion in deep offshore investments, beginning with the approximately $10 billion Bonga South West project.

“I have signed the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, creating a clear and predictable framework capable of unlocking up to $50 billion in deep offshore investment, beginning with the approximately $10 billion Bonga South West project,” Mr Tinubu said.

The policy aims to make previously stalled offshore projects commercially viable by providing investors with tax incentives and greater certainty regarding the fiscal terms governing their investments.

According to NNPC, the framework is expected to reinforce Nigeria’s position as an attractive destination for deep-offshore oil and gas development and unlock more than $50 billion in new investment.

It said the expected investments include major projects such as Bonga South West, Zabazaba and Owowo Deep Offshore developments.

Bonga South West, which was approved in March 2026, is expected to be the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008.

‘Transformative reform’

The Group Chief Executive Officer of NNPC Ltd., Bashir Ojulari, described the order as one of the most significant policy interventions in Nigeria’s upstream sector in recent years.

“This is a transformative reform that sends a strong signal to global investors that Nigeria is committed to providing a stable, competitive and investment-friendly environment for deep offshore development,” Mr Ojulari said.

“Fiscal certainty is a critical driver of investment decisions, and this framework provides the additional clarity the industry has long sought,” he added.

Mr Ojulari said the order aligns with NNPC’s strategy of protecting existing production, accelerating near-term growth and attracting new investments into high-value assets.

“For NNPC Ltd., the Order aligns directly with our strategy of protecting our existing production base, accelerating near-term growth, and attracting new investment into high-value assets,” he said.

He said the reform strengthens the company’s confidence in achieving its 3 MMbopd production ambition while creating greater value for its shareholders and the Nigerian economy.

Mr Ojulari said recent reforms across Nigeria’s petroleum sector had already stimulated more than $34 billion in new investment commitments.

READ ALSO: NNPC posts ₦535 billion profit, records 1.72 million barrels daily oil output in June

He said the Deep Offshore Incentives Order would build on the momentum by enabling timely FIDs on strategic offshore developments.

The NNPC chief executive commended President Tinubu for his commitment to creating an enabling environment for investment and sustainable growth in Nigeria’s energy sector through a series of presidential executive orders.

The company said the latest reform reinforces its commitment to driving sustainable production growth, attracting responsible investment, strengthening Nigeria’s energy security and delivering long-term value to the Federation.


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Business

Coronation Insurance Revenue Grows By 51% to N74.8bn in FY2025

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Coronation Insurance Plc has reported significant growth in insurance revenue and balance-sheet strength for the financial year ended December 31, 2025.

A statement released by the insurer after its 68th Annual General Meeting held in Lagos, the company’s Group insurance revenue rose by 51% N74.8 billion when compared with N49.5 billion achieved in 2024.

Insurance service result also rose by 93%from N5.5 billion to N10.6 billion during the year, while total assets rose by 27.7% cent to N98.1 billion.

Shareholders’ funds increased by 21.9% from 39.8 billion to N48.5 billion.

Profit before tax, however, declined to N9.6 billion from N13.8 billion in 2024, principally because the Company did not record the significant net foreign exchange gain that contributed to the previous year’s result.

Speaking at the AGM, Mutiu Sunmonu, Chairman, Coronation Insurance Plc, said the Company’s 2025 performance demonstrated the importance of building resilience while navigating a changing operating environment.

“The performance of Coronation Insurance in 2025 reflects a business that continued to grow while responding responsibly to significant changes in the market. Our focus remains on strengthening the business, protecting policyholders and creating sustainable value for our shareholders.”

Olamide Olajolo, Managing Director/CEO, Coronation Insurance Plc, said the Company’s revenue growth reflected the strength of its diversified business model, distribution capabilities and customer-focused strategy.

“We entered 2026 with a stronger operating platform, a broader distribution base and greater capacity to respond to the evolving needs of our customers. Our task now is to translate that foundation into deeper market participation, stronger customer relationships and sustainable growth.”

The Company also highlighted the performance of its bancassurance partnership with Access Bank, which generated N19.4 billion in Gross Written Premium for the Group in 2025, compared with N13.6 billion in 2024.

A representative of the Company’s shareholders, Mrs. BisiBakare, said:“We commend the Board, Management and staff for successfully meeting the recapitalisation requirements. We also recognise the progress recorded by the Company during the year. This achievement reflects the strength and resilience of the business, and we look forward to seeing the Company build on this foundation to deliver sustained growth and greater value for shareholders.”

The AGM considered the Company’s audited financial statements and other resolutions relating to its governance, Board composition, Audit Committee and future oversight

The post Coronation Insurance Revenue Grows By 51% to N74.8bn in FY2025 appeared first on Business Today NG.

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Ethiopia, Djibouti hail Dangote’s $660 million pipeline as energy security boost

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Ethiopian Prime Minister Abiy Ahmed and Djibouti President Ismaïl Omar Guelleh have commended Dangote Group’s $660 million Damarjog-Dewele Oil Terminal and Pipeline Project, describing it as a major infrastructure investment capable of transforming regional trade and energy supply.

The leaders spoke at the groundbreaking ceremony for the project at the Damerjog Industrial Development Free Trade Zone in Djibouti.

The project involves the construction of a 120-kilometre multiproduct pipeline connecting marine and coastal storage facilities at Damarjog in Djibouti with inland storage and distribution facilities at Dewele in Ethiopia.

Upon completion, the pipeline is expected to facilitate the movement of refined petroleum products into Ethiopia, reduce transportation bottlenecks and improve the reliability of fuel supplies to the country and the wider region.

Boost to Djibouti

President Guelleh said the project would support Djibouti’s ambition to become a major logistics, industrial and energy hub in Africa.

“Today marks an important chapter in Djibouti’s journey toward becoming a premier centre for logistics, energy, and industrial development. The Damarjog-Dewele Pipeline Project is not merely infrastructure; it is an investment in the future prosperity of our region,” he said.

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According to him, the investment would increase trade volumes, expand port operations, attract additional investments and create direct and indirect employment opportunities.

“We are proud to partner with the Dangote Group in delivering a project that demonstrates the strength of African-led investment and practical African solutions to African challenges,” Mr Guelleh said.

On his part, Prime Minister Abiy said the pipeline would strengthen Ethiopia’s energy security by providing a more efficient and reliable channel for transporting refined petroleum products.

“Ethiopia’s continued economic expansion depends on reliable and efficient access to energy resources. This pipeline will provide a modern, dependable, and cost-effective system for transporting refined petroleum products into the country, thereby enhancing our energy security and reducing supply-chain vulnerabilities,” he said.

He said the project would support sectors including aviation, transportation, agriculture, manufacturing and construction by improving access to petroleum products.

The prime minister also said the infrastructure would reduce losses associated with long-distance transportation and improve the efficiency of Ethiopia’s petroleum distribution network.

He described the project as another example of economic cooperation between Ethiopia and Djibouti.

The project will reduce logistics risks

Speaking at the ceremony, Aliko Dangote, President and Chief Executive of Dangote Industries Limited, said the project was part of the group’s broader efforts to develop infrastructure that supports Africa’s economic growth and self-sufficiency.

“This project is designed to enhance energy security, improve supply-chain efficiency, and create sustainable economic value for both Djibouti and Ethiopia,” Mr Dangote said.

He said Djibouti would benefit from increased port activity, revenues and employment, while Ethiopia would gain improved energy security and reduced logistics constraints.

Mr Dangote noted that the Djibouti corridor is a major route for Ethiopia’s imports and exports, including petroleum products.

According to him, the pipeline would reduce dependence on long-distance tanker movements, ease congestion and lower operational risks associated with transporting petroleum products by road.

READ ALSO: Dangote refinery drove Nigeria’s petrol supply in August as NNPC refineries remain shut — Report

The project is also expected to create jobs during construction and operation and provide opportunities for local contractors, suppliers, transport operators and communities.

The Damarjog-Dewele project is part of Dangote Group’s Vision 2030 strategy, under which the conglomerate plans to invest $50 billion across Africa in industrial and energy infrastructure.

Mr Dangote said the group’s objective was to support African countries in reducing dependence on imports and increasing local production.

“Our vision is to support African countries in becoming self-sufficient in products for which they possess the raw materials, market demand, and strategic necessity,” he said.

The project further expands Dangote Group’s investments in Africa’s energy and industrial sectors, following the development of the Dangote Petroleum Refinery in Nigeria and other investments across the continent.


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