Nigeria’s upstream oil and gas sector is set for a fiscal shake-up with the introduction of the Cost Efficiency Incentives (CEI) Order, 2025 (“CEI Order”). Following our initial overview of the CEI Order, this article by our Partner Josephine Udonsak, Senior Associate Charles Mafua, and Associate Counsel Oluwaseun Lawal offers a further dive into how the CEI Order deploys fiscal and regulatory mechanics to drive cost optimization in the sector. It also explores the recognition of ESG safeguards and inter-agency interplay as key factors in implementing Nigeria’s most targeted upstream incentive yet.

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