President Bola Tinubu has introduced a new executive order aimed at reducing the cost of projects, drawing in investments, and boosting revenue from oil and gas activities.
A statement released on Thursday by the office of the special adviser to the president on energy revealed that the executive order, named the Upstream Petroleum Operations Cost Efficiency Incentives Order (2025), limits companies’ tax credits to 20 percent.
Tax credits, which serve as government incentives, allow businesses to deduct a certain amount from the taxes they owe the government.
As outlined in the statement, the executive order brings in performance-based tax incentives for upstream companies that demonstrate “verifiable cost savings” according to established industry standards.
The statement explained that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will set and release these benchmarks each year, specific to onshore, shallow water, and deep offshore regions.
The statement also said that implementation guidelines will be provided later. One of the key points is that tax credits will be limited to 20% of a company’s yearly tax bill, ensuring government income is protected while still offering appealing fiscal terms to encourage operational efficiency.
President Bola Tinubu said the country must attract investments, not as a favor, but because “investors are convinced of real and enduring value.”
He added that the order serves as a clear message that Nigeria is developing an oil and gas industry that is productive, competitive, and beneficial to all its citizens. He emphasized that the initiative is focused on safeguarding the future, generating employment, and optimizing oil output.
To implement the order successfully, Tinubu appointed his special adviser on energy, Olu Verheijen, to lead cooperation among government agencies, maintain consistency across institutions, and ensure policy goals translate into real-world results.
Verheijen commented that the aim of the order is not just to cut costs but to strategically elevate Nigeria’s upstream oil sector to be competitive and financially strong on a global scale.
She said the reform promotes operational efficiency, boosts investor trust, and ultimately brings more value to the Nigerian people.
According to the statement, this new order expands on the president’s 2024 reform directives, which improved fiscal conditions, shortened project timelines, and aligned local content standards with global practices.
