Nigeria provides a reduction in oil tax for cost savings

Nigeria President Paula Tenobo signed an executive order designed to reduce costs and increase revenues from oil and gas projects.

Efficiency incentives provides the new cost of oil operations, 2025, a tax reduction of companies that show cost reduction measures in their operations.

The executive order aims to encourage cost reduction, stimulate investment and enhance revenue revenue in the oil and gas industry in Nigeria.

President Tenobo described the initiative as a decisive step to enhance efficiency and renew investor confidence in the sector.

Incentives are organized on bonuses that achieve costs against the standards of industry set by the Nigerian Petroleum Regulatory Committee (NUPRC).

The criteria, which will be modified annually, will differ, depending on the operational terrain including beach, shallow water and deep external sites.

Players who meet or exceed these criteria can keep up to 50 % of additional government revenues derived from their cost efficiency.

However, to protect public financial affairs, tax credit will be limited to 20 % of the annual tax commitment to the company.

Tinubu stated: “This is not related to charitable clients, but rather a value. Nigeria must attract investment based on a reliable revenue promise. This matter indicates that our oil and gas sector is fixed to become effective, competitive and useful to all Nigerians.

To ensure smooth and effective implementation, the President assigned his own energy advisor, Oulu Verhejin, while overseeing coordination between agencies and alignment of alignment through major government institutions.

“This reform is not only related to costs. It is a strategic effort to make the Nigeria sector on the source competitive worldwide and financial flexibility. By stimulating efficiency, we enhance investor confidence and ensure a greater value for the Nigerian people,” Verheijen added.

Sinan Murray, from the office of the President’s Special Adviser in the Energy Field, stated that this executive matter depends on the previous reforms of 2024.

These reforms have improved financial conditions, the wounded time schedules of the project, and the requirements of local content coordinated with international standards, which sets the basis for current incentives.

“Nigeria provides an oil tax reduction in order to save costs” was originally created and published by Marine technologyThe brand owned by Globaldata.

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