President Bola Ahmed Tinubu has signed a landmark Executive Order aimed at reducing costs and improving efficiency in Nigeria’s upstream petroleum operations, in a bid to enhance the sector’s global competitiveness and attract foreign investment.
The Upstream Petroleum Operations Cost Efficiency Incentives Order, 2025, introduces a performance-based system that ties tax incentives to measurable cost savings. The framework will benchmark operations according to terrain and reward efficiency, while safeguarding public revenue.
“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,” Tinubu said. “It is about securing our future, creating jobs, and making every barrel count.”
The order is expected to drive reforms in the industry by incentivizing responsible and efficient practices among operators.
