The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced that it generated ₦5.21 trillion in revenue between January and June 2025, representing 34.7% of its ₦15 trillion annual revenue target set by the Federal Government.
The figures were contained in the Commission’s performance report presented at the Federation Accounts Allocation Committee (FAAC) meeting in July. The report also detailed revenue inflows from Joint Venture (JV) and Production Sharing Contract (PSC) royalties, Project Gazelle receipts, and recoveries from outstanding crude oil lifting obligations.
According to the NUPRC report, the ₦5.21 trillion generated includes:
₦1.04 trillion from Nigerian National Petroleum Company Limited (NNPCL) JV and PSC royalties for January to June 2025.
₦315.93 billion from Project Gazelle royalties for November 2024 (received in January 2025), January, and March 2025.
Notably, there were no receipts from Project Gazelle royalties for December 2024, February, April, May, and June 2025.
The Commission also revealed that total NNPCL JV royalties receivable from October 2022 to June 2025 amounted to ₦6.6 trillion, underscoring the long-term scale of government revenue from upstream petroleum operations.
On debt recovery, the NUPRC confirmed that it received $459,226 in June 2025 from outstanding crude oil lifting obligations. This sum forms part of a much larger $1.43 billion expected from reconciliations between NNPCL and the Federation, leaving an outstanding balance of $1.435 billion.
This recovery process is being coordinated by the Technical Sub-Committee of the Alignment Committee on the Reconciliation of Indebtedness, a joint effort to ensure transparent accounting between oil producers, NNPCL, and the Federal Government.
The report showed that ₦630.96 billion was transferred to the Federation Account in June 2025 alone. From January to June 2025, the Central Bank of Nigeria (CBN) transferred a total of ₦4 trillion to the Federation Account from NUPRC-generated revenues.
The performance of the NUPRC in the first half of 2025 is crucial for Nigeria’s fiscal stability. With dwindling oil production in previous years due to crude theft, sabotage, and underinvestment, steady revenue inflows are vital to funding government expenditure.
Oil and gas revenue still accounts for the bulk of Nigeria’s foreign exchange earnings and about 50% of total government revenue. Achieving 34.7% of the annual revenue target in just six months suggests that the Commission is on track, but it will need to accelerate revenue collection in the second half of the year to meet its ₦15 trillion goal.
Project Gazelle, a deepwater oil project, has emerged as a key revenue driver for the NUPRC. The royalty inflows, although inconsistent month-to-month, significantly boosted the Commission’s earnings in the first quarter of 2025. The absence of receipts in multiple months, however, points to the need for stable production and export cycles to optimise government income.
The NUPRC, under its current leadership, has been implementing reforms to:
Improve compliance with royalty and tax obligations.
Strengthen production monitoring and metering systems to reduce underreporting.
Facilitate investor-friendly policies in line with the Petroleum Industry Act (PIA).
These reforms are aimed at maximising Nigeria’s oil and gas potential while ensuring sustainable development in host communities.
While the Commission’s revenue performance is commendable, challenges remain. These include:
Persistent oil theft and pipeline vandalism.
Price volatility in the international oil market.
The need to attract fresh investments amid global energy transition pressures.
Experts say that meeting the ₦15 trillion target will require enhanced operational efficiency, aggressive recovery of outstanding royalties, and steady production levels in key assets like Project Gazelle.
However, opportunities abound. Rising oil prices in the global market, coupled with Nigeria’s push to ramp up crude output to 1.8 million barrels per day, could provide the fiscal space needed to surpass revenue expectations.
The NUPRC’s ₦5.2 trillion half-year performance highlights its growing role as a central driver of Nigeria’s fiscal revenue. If sustained and bolstered by operational reforms, the Commission could not only meet but potentially exceed its 2025 target, delivering much-needed funds for infrastructure, social services, and economic stability.