President Bola Tinubu has signed a new Executive Order aimed at lowering project costs, attracting more investors, and enhancing revenues from operations in the oil sector.
The Upstream Petroleum Operations Cost Efficiency Incentives Order, 2025, introduced a performance-driven framework that linked tax incentives to verifiable cost savings and benchmarks operations by terrain.
The order includes key provisions such as: performance-based tax incentives: operators who achieve industry-standard cost reductions would qualify for defined tax reliefs.
According to the President, 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 had directed the Special Adviser on Energy to coordinate inter-agency efforts to ensure alignment and implementation across all relevant institutions.
Special Adviser to the President on Energy, Olu Verheijen, 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. ”
