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FISCAL POLICY CHANGES IN NIGERIA’S OIL AND GAS SECTOR AND THEIR IMPACT ON UPSTREAM

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INVESTMENT DECISIONS

Nigeria’s upstream oil sector has seen targeted fiscal reforms in 2025-2026, primarily
through the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025
(effective April 30, 2025) and broader tax changes under the Nigeria Tax Act 2025
(effective January 1, 2026). These measures address high operating costs, encourage
efficiency, and broaden the tax base amid volatile oil prices and production shortfalls.

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FISCAL POLICY CHANGES IN NIGERIA’S OIL AND GAS SECTOR AND THEIR IMPACT ON UPSTREAM

INVESTMENT DECISIONS Nigeria’s upstream oil sector has seen targeted fiscal reforms in 2025-2026, primarilythrough the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025(effective April 30, 2025) and broader tax changes under the Nigeria Tax Act 2025(effective January 1, 2026). These

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