Oil & Gas: Presidential directive targets new investments, improved revenues and value in Nigeria

*The Office of the Special Adviser to President Bola Ahmed Tinubu on Energy discloses the new Executive Order is designed to lower project costs, attract investments, and enhance revenues from Nigeria’s oil and gas operations

Isola Moses | ConsumerConnect

President Bola Ahmed Tinubu has issued a new Executive Order (EO) designed to lower project costs, attract investments, and enhance revenues from Nigeria’s oil and gas operations.

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.

Senan Murray, Office of the Special Adviser to the President on Energy, who noted this development, said the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) would publish these benchmarks annually according to terrain—onshore, shallow water, and deep offshore.

The Office of the Special Adviser on Energy, also disclosed the detailed implementation guidelines for the new Order would be issued in due course.

Among other provisions, the Order returns to investors 50 percent of incremental government gain resulting from cost savings.

The Executive Order also caps available tax credits at 20 percent of a company’s annual tax liability—protecting government revenues while still offering strong fiscal terms to incentivise efficient operators.

The Presidential aide stated 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.

“It is about securing our future, creating jobs, and making every barrel count.”

Mrs. Olu Verheijen, Special Adviser to the President on Energy, said in order to ensure effective implementation of the new Order, President Tinubu has tasked her Office to lead inter-agency coordination to ensure alignment across key government institutions, while translating policy intent into measurable outcomes.

Verheijen explained: “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.”

She also stated: “With this reform, we are rewarding efficiency, strengthening investor confidence, and ultimately delivering greater value to the Nigerian people.”

The Office of the Special Adviser to the President on Energy added the new Executive 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.”

Stakeholders are advised to download the gazetted Executive Order at: https://www.energyreforms.ng/.