Nigeria: New cost efficiency incentive framework for upstream oil and gas sector
Performance-based tax credits for operators that meet certain cost reduction targets
The Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025 introduces a new cost efficiency incentive (CEI) framework—providing performance-based tax credits to operators that meet or exceed certain cost reduction targets—for all lessees, licensees, and their contractors operating within Nigeria’s upstream oil and gas sector.
The order was signed into law by the president on April 30, 2025, and is effective from that date until May 31, 2035.
Read a June 2025 report prepared by the KPMG member firm in Nigeria