President Tinubu Signs Executive Order to Cut Down Cost of Oil Projects
President Bola Tinubu has signed a new executive order aimed at slashing upstream petroleum project costs, attracting fresh investment, and increasing government revenues.
The order, officially titled the Upstream Petroleum Operations Cost Efficiency Incentives Order (2025), was announced Thursday by the Office of the Special Adviser to the President on Energy. It introduces a series of fiscal incentives for oil companies that meet specific cost-efficiency benchmarks and includes a cap of 20% on tax credits relative to a company’s annual tax liabilities.
“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,” President Tinubu declared. “It is about securing our future, creating jobs, and making every barrel count.”
Under the new framework, oil companies that demonstrate “verifiable cost savings” in line with defined industry benchmarks will be eligible for performance-based tax incentives. These benchmarks—tailored to onshore, shallow water, and deep offshore terrains—will be published annually by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
To prevent revenue leakage, the order also caps available tax credits at 20% of a company’s annual tax burden. This balance, the presidency says, ensures robust fiscal incentives while safeguarding national income.
Olu Verheijen, the president’s special adviser on energy, has been tasked with leading inter-agency coordination to ensure swift and effective implementation. “This is not about cost-cutting for its own sake,” Verheijen explained. “It is a deliberate strategy to position Nigeria’s upstream sector as globally competitive and fiscally resilient.”
The executive order builds on the administration’s sweeping 2024 reform agenda, which introduced streamlined project timelines, modernised fiscal terms, and aligned Nigeria’s local content policies with international standards.
With this latest order, the Tinubu administration is sending a clear message to global investors: Nigeria is open for business and ready to compete.
“Investors will come, not out of charity,” President Tinubu said, “but because they are convinced of real and enduring value.”
