Tinubu Signs Bold Executive Order to Slash Oil Project Costs and Attract Massive Investments

In a decisive move that could reshape the economic trajectory of Nigeria’s most vital industry, President Bola Ahmed Tinubu has signed a sweeping new Executive Order aimed squarely at reducing the crippling costs of oil and gas projects, while simultaneously accelerating investment and ramping up government revenues from the sector. The announcement, made early Friday morning, sent ripples across the nation’s energy and investment landscapes, igniting hopes of renewed investor confidence and long-awaited reforms in a sector long plagued by inefficiencies and bureaucratic delays.

The Executive Order, signed under the authority of the President’s constitutional powers, marks one of the most significant interventions in Nigeria’s oil and gas sector in recent years. The policy directive seeks to address long-standing challenges in project delivery timelines, high operational costs, and regulatory uncertainty—factors that have discouraged foreign investment and stifled domestic participation in the sector. With this action, Tinubu’s administration is signaling a no-nonsense approach to unlocking the vast potential of Nigeria’s hydrocarbon wealth at a time when global energy dynamics are rapidly shifting.

Sources close to the Presidency revealed that the new Order introduces critical fiscal incentives, streamlined approval processes, and stricter performance benchmarks for agencies operating within the oil and gas value chain. Key provisions include the standardization of project timelines, expedited approval systems for licenses and permits, and the elimination of overlapping regulatory functions that have, for decades, inflated the cost of doing business in Nigeria’s oil fields. For an industry often mired in red tape, the implications of these reforms could be profound.

Industry stakeholders were quick to react. In Lagos and Abuja, corporate boardrooms buzzed with cautious optimism as executives pored over early details of the Executive Order. A senior executive with a leading multinational oil company operating in the Niger Delta described the move as “a breath of fresh air that could finally bring sanity to our operational environment.” Oil and gas experts also noted that, if properly implemented, the Order could cut project costs by as much as 30%, a game-changer in an environment where overrun budgets and unending project delays have become the norm.

Perhaps most critically, the Order also appears designed to restore investor confidence—particularly foreign direct investment, which has declined sharply over the last decade. Nigeria, despite being Africa’s largest oil producer, has struggled to attract significant new investments in upstream exploration and infrastructure development, largely due to uncertainty around the regulatory framework and the cost of compliance. By simplifying rules and ensuring fiscal clarity, Tinubu’s administration hopes to lure both old and new investors back to Nigerian shores.

On the domestic front, the Executive Order is expected to enhance the role of indigenous oil and gas firms, many of which have been hamstrung by limited access to capital and burdensome bureaucratic hurdles. By streamlining approvals and providing targeted incentives for local companies, the new policy is seen as a lifeline for Nigerian entrepreneurs who have long sought a level playing field in a sector dominated by foreign interests. An executive at a Nigerian-owned oil firm hailed the development, saying, “This is the first time in a long time that we’re seeing policy tailored to empower local content and not just serve as lip service.”

While the full text of the Executive Order is yet to be made public, early indicators suggest a strong focus on collaboration between key regulatory bodies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian National Petroleum Company Limited (NNPCL), and the Federal Inland Revenue Service (FIRS). By mandating inter-agency coordination, the Order aims to dismantle the siloed approach that has long hindered cohesive policy execution. The President is also expected to set up a high-level task force to monitor compliance and track the performance of relevant agencies, ensuring that the new measures are not lost in translation.

Observers are already pointing to potential macroeconomic benefits. With Nigeria’s oil production still hovering below pre-pandemic levels and the government facing mounting fiscal pressures, boosting output and revenue is seen as an urgent national priority. The Executive Order is expected to drive quicker turnaround times for stalled oil projects, increase daily crude output, and ultimately raise government earnings from royalties and taxes. In a year when the national budget heavily relies on oil revenue projections, this policy move could not have come at a more critical time.

Moreover, the timing of the Executive Order coincides with renewed global interest in African energy markets, as Western nations seek alternative suppliers in the wake of geopolitical tensions and supply chain disruptions. Nigeria, with its proven reserves and strategic geographic location, is well-positioned to benefit from this renewed attention—provided it can fix the inefficiencies that have plagued its oil sector for decades. Tinubu’s latest action is clearly aimed at positioning Nigeria as a more competitive and reliable energy partner on the global stage.

In the political arena, the President’s move is already being viewed as a bold attempt to fulfill his campaign promise of economic rejuvenation. Critics have often accused previous administrations of tinkering around the edges rather than pursuing deep structural reforms. Tinubu’s Executive Order, in contrast, appears to strike at the heart of systemic problems, suggesting a willingness to confront entrenched interests and deliver tangible results. Some political analysts are even calling it the “first real oil sector reform in a post-PIA era,” referencing the long-delayed Petroleum Industry Act passed in 2021, which many believe has yet to deliver its full potential.

Still, skeptics warn that successful implementation remains the real test. Nigeria has a checkered history of ambitious policy pronouncements that fail to materialize on the ground. Ensuring that the Executive Order translates into real change will require political will, inter-agency coordination, and sustained stakeholder engagement. Transparency and accountability will also be crucial, particularly in ensuring that cost savings are passed on to the Nigerian people and not lost in a maze of corruption or inefficiency.

Yet, despite the hurdles ahead, today’s development marks a bold step in a new direction. As Nigerians awaken to the news of this Executive Order, many will be watching closely to see whether it ushers in a new era for the country’s most vital economic engine. For an industry that has for too long symbolized lost potential and missed opportunities, the message from the presidency is now loud and clear: the era of business as usual is over.