President Bola Tinubu has tasked his Special Adviser on Energy, Mrs. Olu Verheijen, to lead inter-agency coordination of the new Executive Order on slashing oil and gas projects’ cost.
In a statement issued by the office of the special adviser, the President gave her the task in order to ensure effective implementation of the new Order.
The presidential directive is also to ensure alignment across key government institutions and to translate the policy intent into measurable outcomes.
In the statement signed by Mr. Senan Murray of the Media Unit in the Special Adviser’s office, the President signed the Executive Order to slash oil and gas projects’ costs, improve government revenue, and accelerate investment inflow into the nation’s energy sector.
“The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) introduces performance-based tax incentives for upstream operators who deliver verifiable cost savings that meet defined industry benchmarks.
‘The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will publish these benchmarks annually according to terrain—onshore, shallow water, and deep offshore.
“Additionally, detailed implementation guidelines for the new Order will be issued in due course,” Verheijen said.
The Special Adviser added that the Order returns to investors 50 per cent of incremental government gain resulting from cost savings
She said the order also caps available tax credits at 20 per cent of a company’s annual tax liability – protecting government revenues while still offering strong fiscal terms to incentivize efficient operators.
“This is not a pursuit of cost reduction for its own sake. It is a deliberate strategy to position Nigeria’s upstream sector as globally competitive and fiscally resilient.
“With this reform, we are rewarding efficiency, strengthening investor confidence, and ultimately delivering greater value to the Nigerian people.
“The new Order builds on the administration’s 2024 presidential reform directives which delivered improved fiscal terms, shortened project timelines, and aligned local content policies with global best practice,” she said.
Verheijen quoted President Tinubu as saying that: “Nigeria must attract investment inflows, not out of charity, but because investors are convinced of real and enduring value.
“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.
“It is about securing our future, creating jobs, and making every barrel count.”
By Philomina Abuja