President Bola Ahmed Tinubu has signed a new Executive Order aimed at reducing project costs and taxes, boosting investment, and increasing revenue in Nigeria’s oil and gas sector.
This was announced on Thursday by the Special Adviser to the President on Energy, Olu Verheijen on Thursday.
The new Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) brings about performance-based tax incentives for the upstream sector.
While stakeholders await the implementation guidelines, the order pegs tax credits at 20% of a company’s annual tax liability. This ensures strong fiscal incentives for efficient operators while safeguarding government revenues.
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Meanwhile, to ensure effective rollout, the President has directed the Special Adviser on Energy to lead inter-agency coordination, aligning key institutions and translating policy intent into measurable outcomes.
This latest Executive Order is in tandem with the administration’s 2024 reform directives, which enhanced fiscal terms, shortened project timelines, and aligned local content requirements with global best practices.
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,” President Tinubu was quoted as saying.
