Global Daily Tax News, Nigeria Announces Oil, Gas Sector Tax Breaks, (Jun 11, 2025)

Nigeria's President has issued an Executive Order to grant tax breaks to oil and gas firms.

The Upstream Petroleum Operations Cost Efficiency Incentives Order 2025 introduces performance-based tax incentives for upstream operators who deliver verifiable cost savings, intended to ensure more efficient use of Nigeria's natural resources.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) will publish benchmarks annually. Additionally, detailed implementation guidelines for the new Order will be issued in due course, the Government said.

Among other provisions, the Order returns to investors 50 percent of "incremental government gain" resulting from cost savings, and also caps available tax credits at 20 percent of a company's annual tax liability.

"Nigeria must attract investment inflows, not out of charity, but because investors are convinced of real and enduring value," said the nation's President, Bola Ahmed Tinubu. "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."