The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recorded revenue inflows of N5.21 trillion from crude oil, gas, and related activities in the first six months of 2025. This amount represents 42.7% of the N12.2 trillion generated during the entire 2024 fiscal year.
However, this figure falls short of the N15 trillion revenue target set by the Federal Government for 2025, accounting for just 34.7% of the goal needed to fully fund the current budget.
The revenue collection comprises proceeds from royalties, gas sales, penalties on flared gas, and joint venture earnings. According to the commission’s report submitted to the Federation Accounts Allocation Committee, joint venture and production sharing contract (PSC) royalty receivables contributed N1.04 trillion during the period.
Additionally, the report noted N315.93 billion received from the controversial Project Gazelle in January and March 2025. No such inflows were recorded in December 2024, February, April, May, and June 2025.
The report stated:
“The commission’s revenue performance from January to June 2025 is N5.21 trillion, inclusive of NNPC Ltd JV & PSC Royalty Receivables of N1.04 trillion for the period and Project Gazelle receipts of N315.93 billion for November 2024 (received in January 2025).”
Cumulative royalty receivables from October 2022 to June 2025 totaled N6.60 trillion, highlighting the impact of delayed payments from oil companies.
To meet the 2025 budgetary requirements, the commission reaffirmed its ambitious target of N15 trillion for the year.
NUPRC Chief Executive Gbenga Komolafe acknowledged the challenge but expressed confidence, saying,
“We’re ramping up federal revenue. Last year, the commission exceeded its revenue generation by about 163%. Our target this year has been increased to N15 trillion. Though ambitious, we are confident with the strategic plans in place to achieve it.”
The report also disclosed the recovery of $459,226 from outstanding debts, part of a cumulative $1.436 billion owed from various crude oil lifting contracts, leaving a balance of approximately $1.435 billion.
This recovered amount was part of ongoing revenue-sharing reconciliations between NNPCL and the Federation, overseen by the Technical Sub-Committee of the Alignment Committee on Indebtedness.
Despite these figures, mid-year revenue falls short of proportional expectations compared to the N12.25 trillion actual revenue for 2024. Without significant increases in oil production and acceleration in arrears collection, 2025 revenues risk missing the set target.
