President Bola Tinubu has appointed his Special Adviser on Energy, Mrs Olu Verheijen, to lead inter-agency coordination for the new Executive Order aimed at reducing costs in oil and gas projects.
According to a statement from the adviser’s office, the directive is intended to ensure effective implementation of the Order, align key government institutions, and convert policy intent into measurable outcomes.
The statement, signed by Mr Senan Murray of the Media Unit in the Special Adviser’s office, noted that President Tinubu signed the Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) to reduce project costs, boost government revenue, and encourage investment in the energy sector.
“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,” Verheijen said.
She added that detailed implementation guidelines would be issued in due course.
The Order, according to her, returns to investors 50 per cent of incremental government gain resulting from cost savings, and places a cap of 20 per cent of a company’s annual tax liability on available tax credits—maintaining government revenue while incentivising efficient operators.
“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.
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,” she said.
Verheijen also quoted President Tinubu as stating, “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.”
(NAN)