President Bola Ahmed Tinubu has signed an Executive Order aimed at slashing oil and gas Projects’ cost, improving government revenue, and accelerating investment inflow into Nigeria’s energy sector.
In a statement issued by the Office of the Special Adviser to the President on Energy, the Federal Government said the directive introduces far-reaching fiscal reforms that prioritize cost-effeciency, operational accountability, and national value retention.
According to the statement, one of the key provisions of the Executive Order is a cap on tax credits, limiting them to no more than 20 percent of a company’s annual tax liability.
This measure, the government explained, is designed to protect public revenues while still rewarding efficiency and responsible operations in the upstream sector.
The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) introduces performance-based tax incentive for upstream operators who deliver verifiable cost savings that meet defined industry benchmarks.
-9News Nigeria.
