The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recorded a 17 percent year-on-year increase in revenue remittance in 2025, paying a record ₦8.503 trillion into the Federation Account between January and December, the highest contribution by any government revenue-generating agency during the period.
FAAC documents reviewed by The PUNCH show that the Central Bank of Nigeria transferred the full amount on behalf of the upstream regulator, up from ₦7.265 trillion remitted in 2024, as the Federal Government intensified efforts to stabilise crude oil production, improve fiscal transparency, and recover legacy oil and gas revenues amid mounting pressure on public finances.
The increase translated to an additional ₦1.238 trillion year on year, reaffirming the upstream oil and gas sector’s dominance in Nigeria’s revenue mix.
Oil and gas royalties accounted for the bulk of the inflows, contributing ₦7.807 trillion, or about 91.8 percent of the total remitted in 2025. Gas flaring penalties generated ₦611.42 billion (7.2 percent), concession rentals contributed ₦38.19 billion (0.45 percent), while miscellaneous oil revenues, including licences and permits, stood at ₦46.44 billion, or roughly 0.55 percent.
NUPRC’s contribution far exceeded those of other revenue agencies. During the same period, the Ministry of Solid Minerals Development generated ₦68.1 billion, while the Nigeria Customs Service remitted ₦4.04 trillion—less than half of the upstream regulator’s inflow.
Royalty Inflows Fluctuate as Prices, Output Shift
Royalty collections fluctuated across the year, reflecting crude price movements and production constraints. Inflows stood at ₦641.06 billion in January, ₦601.96 billion in February, and ₦556.96 billion in March, before rising by 35.9 percent month on month to ₦757.03 billion in April. Revenues eased again in May (₦567.49 billion) and June (₦558.84 billion).
The second half of the year showed a moderate recovery, with ₦665.13 billion in July, ₦682.28 billion in August, and ₦663.80 billion in September. Royalties peaked in October at ₦807.07 billion, the highest monthly inflow for 2025, before declining to ₦605.26 billion in November and rebounding to ₦700.82 billion in December.
According to the December 2025 Revenue Collection Report presented at the FAAC meeting on January 20, 2026, the commission collected ₦649.55 billion in December. This represented 53.92 percent of its approved monthly budget of ₦1.205 trillion, resulting in a negative variance of ₦555.25 billion, which NUPRC attributed to crude oil price fluctuations and lower production levels.
December collections also dipped slightly from November, falling by ₦10.49 billion, or 1.59 percent, compared with ₦660.04 billion collected the previous month.
Legacy inflows, however, supported year-end revenues. The commission recovered ₦105.58 billion in Project Gazelle royalties, which were due in August 2025 but were collected in December. It transferred the entire ₦649.55 billion December inflow to the Federation Account.
NUPRC also confirmed the receipt of $100.16 million from outstanding Production Sharing Contract and Modified Carry Arrangement liftings owed by the Nigerian National Petroleum Company Limited, leaving a balance of $455,034.81. The dollar inflow formed part of the revenue shared by the federation for the month.
When outstanding receivables are included, the commission’s total revenue performance for 2025 rises to ₦9.93 trillion, comprising ₦742.36 billion in NNPC Ltd JV and PSC royalty receivables and ₦941.27 billion in Project Gazelle royalties.
Upstream Sector Remains Fiscal Anchor Despite Headwinds
Established under the Petroleum Industry Act 2021, NUPRC regulates Nigeria’s upstream petroleum operations and collects statutory royalties, rents, and penalties. Despite persistent challenges such as oil theft, pipeline vandalism, ageing infrastructure, and crude output below OPEC quotas, the 2025 figures underscore the upstream sector’s position as Nigeria’s largest source of FAAC inflows and a critical pillar of fiscal stability.