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.
Naijaonpoint reports that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will publish these benchmarks annually according to terrain, onshore, shallow water, and deep offshore.
Additionally, detailed implementation guidelines for the new Order will be issued in due course. Among other provisions, the Order also caps available tax credits at 20% of a company’s annual tax liability—protecting government revenues while still offering strong fiscal terms to incentivize 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,” President Tinubu said.
To ensure effective implementation of the new Order, the President has tasked the Special Adviser on Energy, Olu Verheijen, to lead inter-agency coordination, ensuring alignment across key government institutions and translating policy intent into measurable outcomes.
“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,” Verheijen said.
Special Adviser to the President on Energy added that “with this reform, we are rewarding efficiency, strengthening investor confidence, and ultimately delivering greater value to the Nigerian people.”
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.
“Now we are shifting from intent to execution with performance, discipline, and value at the center.
Let’s work together to put every barrel to work—for our economy, for investors, and for the future of Nigeria’s energy security,” she added.