Abstract:

The paper assessed how the 2025 Cost Efficiency Incentives Order (CEIO) has impacted sustainability practices in the Nigerian upstream oil & gas industry. The study followed a mixed method approach involving quantitative and qualitative data analysis, cross-sectional survey planning and purposive sampling technique. Data was collected from 28 oil professionals, followed by a detailed interviews carried out on 10 compliance officers and sustainability managers working in four indigenous companies namely; Pan Ocean Oil Corporation Nig. Ltd, Newcross Petroleum Ltd, Newcross Exploration & Production Ltd and Aradel Holdings. Descriptive statistics (frequency and percentages), thematic analysis and inferential analysis (linear regression) were used to estimate the link between CEIO implementation and four major dimensions of sustainability performance (cost discipline, emission reduction strategies, renewable energy integration and stakeholder engagement). Findings showed that CEIO had a significant positive impact on all the areas analyzed and confirmed its effectiveness as a policy tool of shaping fiscal policies towards sustainability. Qualitative analysis also confirmed the statement that taxing incentives such as CEIO are strong motivators, though it further revealed that the policy is still emerging, and that, there remains some bottle necks in terms of bureaucracy, enforcement, implementation and accessibilityof the fiscal incentive. Meanwhile on the overall, the study indicates that fiscal tools such as the CEIO can create effective operations, environmental stewardship, and socially equitable operations within the Nigerian upstream oil sector. It suggests a wider application, persistent revision of policy and alignment with national sustainability policy initiatives with more transparent benchmarks and clearer timelines.

Keywords:

CEIO, sustainability, cost discipline, renewable energy, upstream oil and gas, fiscal policy, emission reduction, renewable energy integration and stakeholder engagement.

How to Cite:

Oluseyi Ishola Oladapo. Evaluating the Impact of the 2025 Cost Efficiency Incentives Order on Sustainability Practices in Upstream Oil & Gas Operations in Nigeria. [ref]: vol.23.2025. available at: https://refpress.org/ref-vol23-a21