NUPRC Generates N5.21tn from Oil Sales in H1

The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), raked in N5.21tn from the sale of crude oil, gas and other economic activities in the first six months of 2025. It said the revenue inflow represents 42.7 per cent of the record N12.2tn it generated in the entire 2024 fiscal year.

The figure, however, represents only 34.7 per cent of the N15tn revenue target set by the Federal Government for the commission to meet to implement the 2025 budget. The revenue was derived from royalties, gas sales, flared gas penalties, and joint venture proceeds.

Revenue inflow obtained from the commission’s latest report submitted at the Federation Accounts Allocation Committee meeting document revealed that the January to June 2025 earnings include payments from Nigerian National Petroleum Company Limited joint venture and production sharing contract royalty receivables totalling N1.04tn for the period.

Also included is N315.93bn from the controversial Project Gazelle receipts for January and March 2025, with no inflows recorded in December 2024, February, April, May, and June 2025.

The report read, “Revenue Performance: The commission’s performance from January to June 2025 is N5.21tn which is inclusive of NNPC Ltd JV & PSC Royalty Receivables of N1.04tn for the period of January to June 2025 and Project Gazelle receipt of N315.93bn for November 2024 (received in January 2025).”

In addition, NNPC’s JV royalty receivables from October 2022 to June 2025 amounted to N6.60tn, reflecting the cumulative impact of delayed remittances from oil companies.

To ensure the smooth operations of the 2025 budget, the commission said it is targeting N15tn revenue this year.

The NUPRC Chief Executive, Gbenga Komolafe, confirming the target, said, “And we all know the importance of that; we’re ramping up federal revenue. Last year, that is for 2024, you remember that the commission achieved and surpassed its revenue generation by about 163 per cent. This year, our target has been increased to about N15tn.

“So, the commission, recognising that, we have equally devised a strategy. Of course, N15tn is so large, but then we are not daunted; we are not intimidated. Rather, we are defining a strategic approach to achieve that target.”

The report also confirmed the recovery of $459,226 from outstanding obligations, part of a cumulative debt of $1.436bn from various crude oil lifting contracts, leaving a balance of $1.435bn.

The NUPRC noted that the recovered sum was part of the revenue-sharing reconciliation between NNPCL and the Federation, overseen by the Technical Sub-Committee of the Alignment Committee on the Reconciliation of Indebtedness.

The commission’s mid-year revenue trails the proportional benchmark compared to its N12.25tn actual earnings for the whole of 2024. At the current pace, revenues could end the year below target unless oil output increases significantly and arrears payments accelerate.