President Bola Tinubu has signed an Executive Order aimed at slashing oil and gas projects’ costs, improving government revenue, and accelerating investment inflow into Nigeria’s energy sector.
In a statement issued on Thursday by the Office of the Special Adviser to the President on Energy, the Federal Government said the directive introduces far-reaching fiscal reforms that prioritise cost-efficiency, operational accountability, and national value retention.
Titled “Putting Every Barrel to Work: Nigeria’s New Presidential Directive on Cost Efficiency Targets New Investments, Improved Revenues and National Value,” the order sets a bold agenda for reining in production expenses while offering globally competitive terms to serious investors.
According to the statement, one of the key provisions of the Executive Order is a cap on tax credits, limiting them to no more than 20 per cent of a company’s annual tax liability.
This measure, the government explained, is designed to protect public revenues while still rewarding efficiency and responsible operations in the upstream sector. The effective date of the Order is set for April 30, 2025.
