PRESIDENT TINUBU ISSUES EXECUTIVE ORDER TO ENHANCE COST EFFICIENCY IN OIL AND GAS OPERATIONS

President Bola Ahmed Tinubu has issued a new Executive Order designed to lower project costs, attract investment, and enhance revenues from oil and gas operations. In a statement, Senan Murray, Office of the Special Adviser to the President on Energy, said 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.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will publish these benchmarks annually according to terrain—onshore, shallow water, and deep offshore. Senan Murray further stated that the Order returns to investors 50% of incremental government gain resulting from cost savings and caps available tax credits at 20% of a company’s annual tax liability.

President Tinubu said, “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.”

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.” Olu Verheijen added that the reform rewards efficiency, strengthens investor confidence, and ultimately delivers 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. Olu Verheijen’s office will work closely with relevant government institutions to ensure effective implementation of the new Order.