Abuja, Nigeria – May 29, 2025 – President Bola Ahmed Tinubu has signed a new Executive Order aimed at cutting operational costs in Nigeria’s oil and gas sector while boosting investment and increasing national revenue.
Titled the Upstream Petroleum Operations Cost Efficiency Incentives Order (2025), the directive introduces tax incentives for oil operators who achieve measurable cost savings that meet industry-specific standards. These benchmarks, categorized by onshore, shallow water, and deep offshore terrains, will be updated annually by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The Order limits tax credits to 20% of a company’s yearly tax liability, balancing investor incentives with the need to protect government revenue.
“This is not charity; it’s smart economics,” said President Tinubu. “We’re sending a clear message: Nigeria’s oil and gas sector is becoming more efficient, competitive, and focused on real value for investors and citizens alike.”
To oversee the initiative’s rollout, the President appointed his Special Adviser on Energy to coordinate across relevant government bodies and ensure the policy delivers tangible results.
“This reform isn’t just about trimming costs—it’s about making Nigeria’s upstream sector globally attractive and financially sustainable,” said Special Adviser Mrs. Olu Verheijen. “We’re rewarding efficiency, inspiring investor confidence, and maximizing returns for the Nigerian people.”
The initiative builds on prior 2024 reforms that improved fiscal frameworks, accelerated project delivery, and harmonized local content rules with global standards.
