Aliyu Abdulkareem, Author at Tribune Online

The Energy Policy Advancement Centre (EPAC) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for generating N5.21 trillion in the first half of 2025, describing it as a clear demonstration of strategic revenue management in Nigeria’s oil and gas sector. In a statement signed by its Director-General, Dr. Ibrahim Musa, EPAC said the mid-year performance under the leadership of NUPRC Chief Executive, Gbenga Komolafe, shows what is possible when regulation is matched with foresight, accountability, and determination. Figures from the commission’s latest report to the Federation Accounts Allocation Committee (FAAC) revealed that the January–June 2025 earnings represent 42.7 per cent of the record N12.2 trillion revenue achieved in the entire 2024 fiscal year. The inflows came from royalties, gas sales, flared gas penalties, and joint venture proceeds. EPAC noted that NUPRC’s strong showing was achieved despite the volatility of the global oil market and domestic production challenges, adding that the performance strengthens the country’s fiscal position at a time of significant budgetary demands. “NUPRC has shown that with deliberate strategies and a results-oriented approach, Nigeria can unlock more value from its upstream petroleum sector. This is not just about impressive figures—it is about building the confidence that our institutions can deliver on ambitious national targets,” he said. The report indicated that the commission’s earnings include N1.04 trillion from Nigerian National Petroleum Company Limited (NNPCL) joint venture and production sharing contract royalty receivables, alongside N315.93 billion from Project Gazelle receipts in January and March 2025. It also highlighted that NNPC’s JV royalty receivables from October 2022 to June 2025 amounted to N6.60 trillion, underscoring the cumulative effect of delayed remittances from oil companies. Musa particularly applauded the NUPRC’s debt recovery drive, which yielded $459,226 from outstanding obligations—part of a cumulative $1.436 billion owed from crude oil lifting contracts. This recovery, he said, was a product of rigorous reconciliation processes between NNPCL and FAAC, overseen by the Technical Sub-Committee of the Alignment Committee on the Reconciliation of Indebtedness. “Debt recovery may not attract headlines, but it is the backbone of fiscal discipline. Every dollar recovered is a step towards stabilising government finances and strengthening our economic resilience. The NUPRC’s persistence in this regard is commendable.” For 2025, the Federal Government has tasked the commission with raising N15 trillion to fund national expenditure. EPAC said that while the mid-year figure of N5.21 trillion represents 34.7 per cent of this target, the pace of achievement so far—combined with strategic arrears recovery and potential production boosts—suggests that the goal remains within reach. Musa stressed that what sets the current performance apart is not only the quantum of revenue but also the discipline with which it is being pursued. He said the commission’s approach to expanding its revenue base while maintaining transparency should serve as a model for other public institutions. “NUPRC has moved beyond passive regulation to active value generation. This is the kind of institutional energy Nigeria needs—one that does not see targets as threats but as opportunities to innovate and excel,” he said. EPAC urged oil companies and relevant agencies to align with the commission’s momentum by ensuring timely payments, compliance with regulations, and support for upstream investments that can further raise output and earnings. “We are in an era where every revenue stream matters. With the right cooperation, there is no reason the N15 trillion target cannot be met or even surpassed. The NUPRC has set the tone; it is now up to all stakeholders to match that commitment,” he said. The Energy Policy Advancement Centre emphasised that the commission’s mid-year achievement should serve as a reminder of the critical role upstream petroleum revenues play in Nigeria’s economic stability, and why sustained reforms in the sector must remain a national priority.