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Background
On April 30, 2025, The President of Nigeria signed into law the Upstream Petroleum Operations (Cost Efficiency Incentives) Order, 2025. This order aims to reduce operating costs in the upstream oil and gas sector while enhancing global competitiveness and efficiency.
The Order introduces a Cost Efficiency Incentive (CEI) framework, which offers a performance-based tax incentive for eligible upstream operators who reduce their Unit Operating Costs (UOC) below annual targets.
It also seeks to maximise economic returns from petroleum operations by reducing operational costs, project delays and contracting inefficiencies.
Read the tax alert for the full report.