The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has earned high praise from the Energy Governance Alliance (EGA) for generating ₦12.25 trillion in revenue for 2024—a performance the group described as unprecedented and reflective of deep institutional reform under the leadership of the commission’s Chief Executive, Gbenga Komolafe.
According to NUPRC’s 2024 Annual Report, the figure represents a 182 per cent increase from the ₦4.34 trillion recorded in 2023. It also exceeded the 2024 revenue target of ₦6.93 trillion by over ₦5 trillion.
In a statement on Tuesday, EGA’s Executive Director, Dr. Kelvin Sotonye William, said the achievement signified a clear shift toward fiscal transparency and more rigorous enforcement of statutory obligations in the upstream oil and gas sector.
“This performance is not accidental,” the statement noted. “It reflects strengthened regulatory enforcement around royalties, gas flare penalties, and lease renewals—areas that had previously suffered from chronic underperformance.”
The commission’s revenue breakdown showed that oil and gas royalties contributed ₦11.08 trillion. Gas flaring penalties generated ₦391.26 billion, while concession rentals brought in ₦23.71 billion. Signature bonuses accounted for ₦369.57 billion, lease renewals ₦230.73 billion, miscellaneous income ₦35.19 billion, and goods and valuable consideration ₦117.02 billion.
EGA hailed these results as validation of the Petroleum Industry Act (PIA) 2021, noting that the Komolafe-led NUPRC is beginning to realise the law’s promise of financial accountability and sectoral reform. The alliance commended the commission for restoring confidence in a sector long marred by opacity.
“The NUPRC has demonstrated what regulatory clarity and institutional courage can deliver,” said Dr. William. “For the first time in years, we are seeing a comprehensive governance approach that closes loopholes across the system and promotes compliance.”
In terms of production, the report indicated total crude output for 2024 stood at 578.5 million barrels, with a daily average of 1.58 million barrels. Of this total, 482.8 million barrels were crude oil, while 95.7 million barrels were condensates. Production was shared among joint ventures at 48 percent, production sharing contracts at 35 percent, sole risk operations at 13 per cent, and marginal fields at 4 per cent.
EGA also welcomed NUPRC’s publication of unreconciled production volumes and its technical allowable rate (TAR) disclosures, which showed a 67 per cent compliance rate in 2024. The alliance urged closer collaboration with operators to further improve efficiency and transparency in reporting.
“This level of transparency is a welcome departure from past practice and lays the foundation for improved investor confidence,” Dr. William stated.
The group highlighted the commission’s performance in gas flaring penalties and lease renewals, both of which surpassed projections by over 200 per cent. Notably, revenue from gas flaring penalties reached ₦391 billion against a projected ₦126 billion, which EGA described as indicative of a zero-tolerance stance on environmental infractions.
“Gas flaring is both an ecological concern and an economic loss. The increased enforcement reflects a shift towards more responsible upstream operations,” the alliance remarked.
EGA concluded by urging the federal government to reinvest part of the revenue surplus into host community development, energy transition initiatives, and infrastructure projects in the Niger Delta. It also called on President Bola Tinubu to insulate the commission from political interference to sustain the momentum of reform.
“This is a reminder that good governance in the extractive sector is possible when capacity meets commitment. The NUPRC should be supported to continue along this path,” the statement said.
