Policy analysts and energy-sector specialists have commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) following reports that the commission generated ₦8.79 trillion for the Federation Account between January and October 2025.
The strong performance is attributed to stricter administrative and fiscal controls, enhanced enforcement measures, and a more assertive regulatory approach, in line with the objectives of the Petroleum Industry Act (PIA).
Revenue Breakdown
The total remittance of ₦8,795,528,705,538.82 includes:
- October Collection: ₦873.10 billion, a 17.67% increase from September’s ₦741.99 billion.
- Royalty Receivables: Over ₦1.02 trillion from NNPC Joint Venture (JV) and Production Sharing Contract (PSC) royalties.
- Project Gazelle: ₦835.69 billion, covering receipts from November 2024 and part of 2025.
Despite the gains, October’s collections represented 72.47% of the ₦1.204 trillion monthly budget, reflecting challenges such as low crude output, infrastructure constraints, and crude theft.
Performance Across Key Revenue Streams
- Oil and Gas Royalties: ₦807.08 billion, a significant increase from September.
- Rental Income: Grew by 65% month-on-month.
- Gas Flare Penalties: Exceeded targets at 105.52%, demonstrating improved compliance enforcement.
Expert Insights
Dr. Ifeanyi Okonkwo, public affairs analyst and former National Assembly adviser, said the figures reflect a deliberate tightening of controls:
“NUPRC under Komolafe has embraced the discipline the upstream sector has long lacked. There is now a clear commitment to transparency, monthly reconciliation, and the closure of historical leakages. Sustained high remittances despite fluctuating production show the regulator is acting decisively.”
Energy economist Dr. Hauwa Ibrahim described the performance as a reassuring signal amid a challenging global oil market:
“Even in a constrained production environment, a disciplined regulatory framework can deliver strong outcomes. NUPRC’s clarity, consistency, and predictable enforcement are helping stabilize the upstream sector.”
Petroleum engineer Engr. Mike Osamudiamen highlighted the commission’s handling of longstanding NNPC debts as transformative:
“Resolving historical obligations and clarifying the books restores credibility to the federation’s finances. Sustained vigilance, accurate measurement systems, and strict royalty compliance are now essential to maintain this momentum.”
Experts agree that NUPRC’s assertive approach and strengthened enforcement mechanisms mark a turning point for the Nigerian upstream oil sector, promising more predictable revenue flows and improved sectoral stability.
