NUPRC Surpasses Revenue Target By 49%

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has surpassed its revenue target by 49 per cent as global hydrocarbon producers were witnessing lower royalties and weak margins.

The achievement comes despite onslaughts on oil and gas investments due to the global push for energy transition.

The revenue surge was disclosed at the public interactive hearing organised by the National Assembly (NASS) Joint Committees of Finance and Planning on the 2025–2027 Medium Term Fiscal Framework (MTF) and Fiscal Strategy Paper (FSP).

As of October 2024, the NUPRC had surpassed its revenue target by 49 per cent, signalling more revenues for the government to fund its deficits.

The revenue performance followed NUPRC’s transformation of the country’s upstream sector using regulation to block leakages and open up the industry for massive investments despite the divestment of some oil and gas assets.

The Petroleum Industry Act, 2021 established the NUPRC, which is headed by the pioneer Commission Chief Executive (CCE), Engr. Gbenga Komolafe.

Since its establishment, Komolafe has consistently led the organisation to achieve and surpass the set revenue target.

Reacting to the development, Komolafe said the commission was “poised to achieve more through various ongoing initiatives such as the project one million per day initiatives, bid round, drill or drop and other mandates as set by the PIA.”

Recall that on October 22, 2024, the commission launched the one million barrels per day production initiative aimed at boosting daily production to over 2.7mbpd.

Komolafe also led the launch of bid round for oil blocks in at the Offshore Technology Conference in Houston, Texas, USA, in May 2024, which has attracted investors like TotalEnergies among others.

Another initiative that has fueled revenue collection is the drill or drop initiative, which mandates producers to drill a well within a specified time frame or forfeit the license area.

LEADERSHIP reports that the NUPRC had explained how it operates transparently in line with the framework that established the Federation Accounts, which has seen more revenues flow into government coffers in the last three years.

“We are a patriotic and transparent regulator, and the commission is committed to serving the nation effectively. We owe that duty to the nation in the sense that if you have a regulator that is not transparent, that regulator will send the wrong signal to the international community,” Komolafe said in an interview with journalists recently.

He added, “We are serving and helping the country to recover revenue in terms of royalty and it is just one aspect of our job and why it is important to situate that task in our statutory mandate is for checks and balances. It creates an unbroken chain of transparency for regulators to be responsible by helping the nation recover revenue.”