Tinubu Signs Oil Sector Tax Incentive Order

President Bola Tinubu has signed a new Executive Order introducing performance-based tax incentives to reduce oil and gas sector project costs, enhance government revenues, and attract new investment to Nigeria's energy sector. The directive caps tax credits at 20% of a company's annual tax liability and uniquely returns 50% of incremental government gains from cost savings directly to investors. This initiative follows recent reforms that have already attracted over $8 billion in deepwater oil and gas investments within a year. The Nigerian Upstream Petroleum Regulatory Commission will set annual cost efficiency benchmarks, with detailed implementation guidelines to be released. The Order also aims to streamline bureaucratic processes and ensure government revenues are protected. Tinubu underscored that these measures seek to position Nigeria as a leading global investment destination for oil and gas.