President Bola Tinubu has issued a new Executive Order designed to lower project costs, attract investment, and enhance revenues from oil and gas operations.
The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) introduces performance-based tax incentives for upstream operators who deliver verifiable cost savings that meet defined industry benchmarks, Senan Murray, media contact in the office of the Special Adviser to the President on Energy, said in a statement.
|
|
The statement said the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will publish these benchmarks annually according to terrain—onshore, shallow water, and deep offshore.
Additionally, it said detailed implementation guidelines for the new Order will be issued in due course.
|
|
|
|---|
Among other provisions, it explained that the Order returns to investors 50 per cent of incremental government gain resulting from cost savings, and also caps available tax credits at 20 per cent of a company’s annual tax liability—protecting government revenues while still offering strong fiscal terms to incentivise efficient operators.
“Nigeria must attract investment inflows, not out of charity, but because investors are convinced of real and enduring value. This Order is a signal to the world: we are building an oil and gas sector that is efficient, competitive, and works for all Nigerians. It is about securing our future, creating jobs, and making every barrel count,” Mr Tinubu was quoted as saying.
To ensure effective implementation of the new Order, the statement said the President has tasked the Special Adviser on Energy to lead inter-agency coordination, ensuring alignment across key government institutions and translating policy intent into measurable outcomes.
READ ALSO: Buhari praises, advises Tinubu at Midterm
Olu Verheijen, Special Adviser to the President on Energy said: “This is not a pursuit of cost reduction for its own sake. It is a deliberate strategy to position Nigeria’s upstream sector as globally competitive and fiscally resilient. With this reform, we are rewarding efficiency, strengthening investor confidence, and ultimately delivering greater value to the Nigerian people.”
The statement noted that the new order builds on the administration’s 2024 presidential reform directives which delivered improved fiscal terms, shortened project timelines, and aligned local content policies with global best practice.
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
