Nigeria’s newly approved $50 billion deep offshore investment framework is designed to attract fresh investment into the oil sector and position the country for future growth, according to the Chief Investment Officer of VNL Capital Asset Management, Dr Ifeanyi Ubah.

Ubah made the disclosure during an interview on Arise News’ Global Business Report, where he explained that deepwater oil projects require several years to develop before they begin production.

He said projects launched under the new framework could start producing around 2030 or 2031, making the initiative more focused on Nigeria’s long-term oil prospects than on taking advantage of current crude oil prices.

Ubah noted that global oil demand is expected to grow at a modest pace around the time the projects come on stream, meaning Nigeria needs to plan ahead to remain competitive in the international oil market.

The investment framework provides several incentives for companies willing to develop qualifying deepwater projects. According to Ubah, investors could benefit from tax incentives of up to $11.50 per barrel, alongside a 70:30 profit-sharing arrangement between contractors and the government.

He said the incentives could significantly improve the economics of offshore developments and encourage international and private investors to commit new funds to Nigeria’s oil and gas industry.

Beyond increasing investment, Ubah said the framework could create skilled jobs and strengthen Nigeria’s local technical capacity by supporting more offshore projects and related activities.

The initiative comes as Nigeria continues efforts to revive investment in its upstream sector and increase production amid changing global oil demand and the long-term energy transition.