6 days ago
Nigeria offers oil tax relief for cost-cutting measures
Nigerian President Bola Tinubu has signed an executive order introducing a performance-driven framework for oil sector operators, designed to link tax incentives directly to verifiable cost savings.
Under the new Upstream Petroleum Operations Cost Efficiency Incentives Order 2025, operators who successfully implement industry-standard cost reductions in onshore, shallow-water and deep offshore fields will qualify for defined tax relief.
These tax credits will be capped at 20% of an operator's annual tax liability.
"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 in a statement.
"It is about securing our future, creating jobs, and making every barrel count."
