NUPRC achieves record-breaking N12.25 trillion in revenue for 2024

The Energy Governance Alliance (EGA) has hailed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for generating an unprecedented N12.25 trillion in revenue in 2024 — a historic milestone credited to sweeping reforms and focused leadership under the Chief Executive, Engr. Gbenga Komolafe.

In a statement signed by its Executive Director, Dr. Kelvin Sotonye William, on Wednesday, July 9, 2025, the group said the performance underscores the impact of NUPRC’s regulatory overhaul and strategic enforcement in line with the Petroleum Industry Act (PIA) 2021.

“The Energy Governance Alliance welcomes the stellar performance of the NUPRC under the visionary stewardship of Mr. Gbenga Komolafe for generating over N12 trillion in 2024 — the highest ever recorded in a single year in Nigeria’s upstream sector,” the statement read.

The figure, detailed in the commission’s 2024 Annual Report, marks a 182.25% rise from N4.34 trillion in 2023 and overshoots the 2024 revenue projection of N6.93 trillion by over N5 trillion.

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“This performance is not accidental. It reflects sustained policy clarity, increased compliance, and a bold enforcement posture on critical issues such as royalty payments, gas flare penalties and lease renewals. These are the very foundations of energy justice,” William stated. “We applaud the Commission for restoring regulatory credibility in a sector long plagued by opacity and inefficiency.”

EGA stated that the commission’s results have validated the core objectives of the PIA, particularly in terms of revenue optimisation and institutional transparency.

According to NUPRC’s breakdown, oil and gas royalties contributed N11.08 trillion, while gas flare penalties generated N391.26 billion — more than triple the projected N126 billion. Lease renewals yielded N230.73 billion, well above the forecasted N80.63 billion.

Additional revenue came from signature bonuses (N369.57 billion), concession rentals (N23.71 billion), goods and valuable consideration (N117.02 billion), and miscellaneous income (N35.19 billion).

Dr. William praised the commission’s “whole-of-sector approach,” noting its efforts had closed revenue leakages and curbed entrenched rent-seeking behaviours.

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“For the first time in recent memory, we are seeing a regulator extract value from multiple pressure points across the upstream system — from flare penalties to lease administration. This is what it means to govern oil in the public interest,” he said.

The group also highlighted NUPRC’s commitment to transparency, citing the publication of unreconciled production volumes, daily output averages, and compliance data under the Technical Allowable Rate (TAR) regime as a welcome departure from past secrecy.

“This is not just about revenue. It’s also about regulatory honesty. By publishing unreconciled volumes and clarifying that they are not to be mistaken for export figures, NUPRC has sent a strong message that it is no longer business as usual,” William noted.

According to the report, total crude oil production in 2024 was 578.5 million barrels, with a daily average of 1.58 million barrels. Joint ventures accounted for 48%, production sharing contracts for 35%, sole risk operators for 13%, and marginal fields for 4%. The TAR stood at 67% for the year.

EGA expressed particular satisfaction with the sharp rise in gas flaring penalties and lease renewals, both of which exceeded projections by over 200%.

“Gas flaring is an ecological crime and an economic waste. The fact that penalties have become a major revenue item shows the Commission’s zero-tolerance stance. We expect this to further push operators towards cleaner and more responsible energy production,” the alliance stated.

EGA called on the Federal Government to invest part of NUPRC’s surplus revenue into host community development, clean energy projects, and critical infrastructure in the Niger Delta.

“Komolafe’s performance shows that Nigeria’s oil sector can deliver both revenue and reform — if we prioritise competence, clarity, and courage. The Energy Governance Alliance urges President Bola Ahmed Tinubu to continue backing such reforms and ensure that the NUPRC remains insulated from political interference,” the statement concluded.

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