Tinubu Approves New Tax Relief to Boost Nigeria’s Oil Sector

In a bid to attract investment and reduce production costs, President Bola Tinubu has signed an executive order offering tax relief incentives to oil companies that demonstrate cost efficiency in their operations.

The new policy allows qualifying firms to deduct up to 20% of their annual tax if they meet specific cost-reduction benchmarks in exploration, logistics, or maintenance.

Also Read: Over 115 Dead in Mokwa as Floods Wipe Out Town and Displace Thousands

“This is a reform-minded administration,” said Petroleum Minister Heineken Lokpobiri. “We’re focused on unlocking Nigeria’s full oil and gas potential through fair, investor-friendly policies.”

The move has already sparked optimism among local and international operators, many of whom have been grappling with rising costs and regulatory uncertainty.

Also Read: Nigeria Jails 15 Foreign Nationals for Massive Internet Scam

However, critics warn that without strict oversight, the policy could lead to abuse or inflated reporting by firms seeking to claim reliefs.

Still, many industry stakeholders see this as the most promising oil-sector reform since the passing of the Petroleum Industry Act.

Follow us on X @Dobblog1