“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,” President Tinubu declared.
President Bola Ahmed Tinubu has signed the Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) to cut production costs and provide performance-based tax incentives for Nigeria’s upstream oil operators.
The Executive Order introduces a framework rewarding cost-saving initiatives, returning 50 per cent of government savings to operators, with tax credits capped at 20 per cent of annual tax liabilities. The Nigerian Upstream Petroleum Regulatory Commission will publish annual benchmarks by terrain to guide incentives.
Olu Verheijen, Special Adviser on Energy, described the policy as a move to make Nigeria’s oil sector “globally competitive and fiscally resilient.” The reforms follow $8 billion in recent deepwater investments, signaling renewed investor confidence.
President Tinubu emphasized that the policy aims to create jobs and maximize economic value from oil resources. An inter-agency team will ensure effective implementation, targeting cost reduction and greater sector efficiency.