NUPRC Rakes in N28bn from Oil Licensing Fees
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has generated a total sum of N28.11bn in miscellaneous oil revenue tied to licensing fees and renewals within the first five months of 2025.
The fund collected by the commission between January and May 2025 was remitted fully to government coffers. This comes amidst the scramble by over 40 Petroleum Prospecting Licence holders to renew their exploration permits.
An analysis of data from the monthly revenue submission by the regulatory commission to the Federal Accounts Allocation Committee between January and June showed that the commission recorded a cumulative N28.11bn in “Miscellaneous Oil Revenue” between January and May.
The commission described this category of income as revenue generated from granting approvals for various types of licences and permits. Still, it did not disclose the specific amounts earned from each source.
A breakdown of the figures reveals that the highest earnings came in April, when the regulator collected N10.04bn. This was followed by N9.19bn in January, N3.64bn in February, N2.18bn in March, and N3.04bn in May.
The spike in non-royalty income comes amid new licensing and renewal policies rolled out by the NUPRC, including a requirement for oil producers to pay a $5,000 processing fee and submit 13 key documents for licence extension.
It was reported earlier that the licences awarded in 2022 would expire on June 27, 2025.
In the letter titled, ’Notification of PPL Tenure Expiration And Conditions For Extension’, the Chief Executive of the NUPRC, Gbenga Komolafe, said, “Further to the award of a Petroleum Prospecting License to your company during the 2020 Marginal Field Bid Round, a review of our records indicate that the PPL will expire on 27th June 2025 which is in line with the terms of award of the licence.”
By the provisions of Section 77 of the Petroleum Industry Act 2021 and 2022 Regulation on Extension of Licence, Komolafe said the letter served as a formal reminder that the PPL holders were required to either apply for an optional additional three years exploration period based on fulfilment of Minimum Work Programme/Minimum Financial Commitment attached to the licence at the time of the award and other obligations.
The law provides for an optional extension of three or five years; however, the extension would depend on the company’s performance. The commission is expected to rake in more revenue if all licensee make an application to renew their contract.
Nonetheless, the Federal Government appears pleased with the commission’s performance. Between January and May 2025, total revenue from the upstream sector, covering royalties, gas flaring penalties, concession rentals, and miscellaneous oil income, stood at over N3tn.
The commission has said it is targeting N15tn revenue this year. A breakdown of the FAAC document further revealed that revenue was generated from key streams, including oil royalties, gas flaring penalties, concession rentals, and miscellaneous oil income.
Oil royalties alone contributed a staggering N2.56tn to the Federation Account within the five-month period. Gas flaring penalties added N201bn, while concession rentals and miscellaneous oil revenue contributed N29.1bn and N28.1bn respectively.
Despite Nigeria’s 2030 net-zero pledge and previous deadlines to end routine flaring, the figures indicate the persistent environmental cost of flaring by oil producers.
The monthly breakdown shows N36.6bn in January, N36.5bn in February, N55.1bn in March, N30.4bn in April, and N42.9bn in May, making gas flaring one of the top five income streams for the regulator.