Nigerian President Bola Ahmed Tinubu has signed an executive order designed to lower project costs for investors while enhancing revenue from oil and gas projects. The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) introduces performance-based tax incentives for upstream operators, expected to play a crucial role in attracting investment, driving development, and unlocking greater value from Nigeria’s oil and gas resources.
This strategic initiative aims to transform the country, and with this reform, Nigeria is poised to attract fresh investment in its upstream oil and gas sector, solidifying its position as a top African producer. The order features incentives for operators delivering verifiable cost savings that meet defined industry benchmarks.
The Nigerian Upstream Petroleum Regulatory Commission will annually publish benchmarks by asset type, covering onshore, shallow-water, and deep-water assets. Furthermore, the executive order limits tax credits to 20% of a company’s annual tax liability, ensuring government revenue protection and fiscal competitiveness.
Nigeria’s Special Advisor to President Tinubu on Energy, Olu Verheijen, will spearhead inter-agency coordination to ensure operators maximize opportunities presented by the executive order.
Source:https://energynewsafrica.com
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