SEO Riders:
– Nigeria’s Upstream Petroleum Operations Cost Efficiency Incentives Order 2025
– Performance-Based Tax Incentives in Nigeria’s Oil Sector
– Enhancing Investment in Nigeria’s Upstream Oil and Gas Industry
On June 2, 2025, President Bola Ahmed Tinubu signed the Upstream Petroleum Operations Cost Efficiency Incentives Order (2025), aiming to reduce operational costs and boost revenue in Nigeria’s oil and gas sector. This executive order introduces performance-based tax incentives for upstream operators who achieve verifiable cost savings that meet defined industry benchmarks. The Nigerian Upstream Petroleum Regulatory Commission will publish these benchmarks annually, covering various asset types, including onshore, shallow-water, and deep-water operations. Tax credits are capped at 20% of a company’s annual tax liability to maintain fiscal balance.
This initiative is part of Nigeria’s broader strategy to attract significant investment in its upstream oil and gas sector, targeting an increase in oil production to two million barrels per day and gas production to 12 billion standard cubic feet per day. The executive order complements previous reforms, such as the Petroleum Industry Act of 2021, which provided a comprehensive framework for the country’s oil and gas landscape. Together, these measures aim to enhance Nigeria’s competitiveness as a top oil producer in Africa and stimulate economic growth through increased investment and development in the energy sector.
