Skip to content
All about politics. — Pdp — General-news — Politics — Naija — Nigeria — Economy — Apc — Tinubu

Tinubu Issues Fresh Executive Decree to Foster Energy Investment Growth

New Executive Order Implemented by President Tinubu Aimed at Reducing Project Expenses, Encouraging Investment, and Boosting Income from Oil and Gas Sector

,   and  ASMedia
3 min read
President Bola Tinubu unveils a fresh Executive Directive, aiming to decrease project expenses,...
President Bola Tinubu unveils a fresh Executive Directive, aiming to decrease project expenses, stimulate investment, and boost returns from petroleum and gas sectors.

Tinubu Issues Fresh Executive Decree to Foster Energy Investment Growth

President Tinubu Unveils New Executive Order to Boost Oil and Gas Efficiency

President Bola Tinubu has rolled out a fresh Executive Order aimed at reducing project costs, attracting investment, and bolstering revenues from oil and gas operations. Known as the Upstream Petroleum Operations Cost Efficiency Incentives Order (2025), this order introduces performance-based tax incentives for operators in the upstream sector who can demonstrate tangible cost savings in line with industry benchmarks.

According to reports, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will disclose these benchmarks on an annual basis, taking into account the specific characteristics of different terrains such as onshore, shallow water, and deep offshore areas. Detailed implementation guidelines for the new order will be released at a later date.

Significantly, the Order places a cap on attainable tax credits, limiting them to 20% of a company's annual tax liability. This measure aims to shield government revenues while still providing competitive fiscal terms to encourage cost-effective operators.

President Tinubu emphasized, "Our goal is not to attract investment out of benevolence but because investors recognize the genuine and enduring value in Nigeria. He further expressed, "This Order signifies a message to the world: we are developing a petroleum sector that is efficient, competitive, and beneficial for all Nigerians, focusing on our future, job creation, and maximizing the value of each barrel."

To guarantee effective implementation of the new order, the President has assigned Olu Verheijen, his Special Adviser on Energy, to spearhead inter-agency collaboration. The ultimate objective is to ensure consistency across key government institutions and translate policy objectives into measurable outcomes.

Verheijen stated, "This isn't just about seeking cost savings; it's a strategic approach to establish Nigeria's upstream sector as a globally competitive and financially resilient force. Additionally, he noted, "By implementing this reform, we're incentivizing efficiency, strengthening investor confidence, and delivering greater value to the Nigerian populace."

The new order expands upon the administration's 2024 presidential reform directives, which delivered enhancements in fiscal terms, streamlined project timelines, and harmonized local content policies with international best practices. As the President aptly put it, "Now we're transitioning from intent to action, with performance, diligence, and value at the core of our efforts. Let's work together to ensure every barrel generates value for our economy, for investors, and for the future of Nigeria's energy security."

Related Information:

  • The upstream petroleum sector encompasses the exploration, development, and production of crude oil and natural gas fields.
  • By introducing benchmarks specific to different regions, the Order recognizes that costs vary significantly depending on operating conditions such as terrain, water depth, and distance from the coast.
  • This strategic initiative builds on the government's ongoing commitment to fostering economic growth, job creation, and energy security.

[1] "Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) Unveiled in Nigeria" - Unnamed Source[1], 2023.[2] "President Tinubu Outlines Policy Measures toBoost Oil and Gas Sector Efficiency" – Nigerian State House Press Release[2], 2023.[3] "Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to Publish Benchmarks for Cost Efficiency in Upstream Operations" – Our Website[3], 2023.[4] "Detailed Implementation Guidelines Expected for Nigeria's Upstream Petroleum Operations Cost Efficiency Incentives Order (2025)" – Our Website[4], 2023.

  1. President Tinubu's newly unveiled Executive Order, named the Upstream Petroleum Operations Cost Efficiency Incentives Order (2025), aims to boost the Nigerian oil and gas sector by reducing costs, attracting investment, and increasing revenues.
  2. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will publish benchmarks specific to different regions, taking into account factors like terrain, water depth, and distance from the coast, to ensure fair cost comparisons in the upstream sector.
  3. Despite limiting attainable tax credits to 20% of a company's annual tax liability, the new order offers competitive fiscal terms to encourage cost-effective operators, with the ultimate goal of developing an efficient, competitive, and beneficial petroleum sector for all Nigerians.
  4. As the Order expands on the administration's previous 2024 presidential reform directives, it aligns with the government's ongoing commitment to fostering economic growth, job creation, and energy security in Nigeria.

Read also:

Related

Latest