NUPRC exceeds revenue target by 49% amid global challenges

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has outperformed expectations by exceeding its 2024 revenue target by an impressive 49%. This achievement, according to reports, comes amidst global challenges in the hydrocarbon industry, where producers are grappling with declining royalties and tight profit margins due to the accelerating energy transition.

The revenue performance, per the reports, was disclosed during a public hearing organised by the National Assembly’s Joint Committees of Finance and Planning on the 2025–2027 Medium-Term Fiscal Framework (MTF) and Fiscal Strategy Paper (FSP).

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As of October 2024, NUPRC’s efforts have contributed significantly to government revenues, bolstering funds to address fiscal deficits.

The NUPRC attributes this success to transformative regulatory measures that have reduced inefficiencies and opened the Nigerian upstream sector to increased investments. Despite the divestment of some oil and gas assets, the commission, established under the Petroleum Industry Act (PIA) 2021, has maintained robust oversight, ensuring that Nigeria’s petroleum sector remains competitive.

Gbenga Komolafe, the Commission Chief Executive (CCE) of the NUPRC, credited the achievement to strategic initiatives, including the “Project One Million Per Day” aimed at increasing daily crude oil production to over 2.7 million barrels. Launched on October 22, 2024, this initiative underpins Nigeria’s ambition to solidify its position as a leading oil producer.

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Additionally, Komolafe has overseen the introduction of other impactful programmes such as the drill-or-drop policy, which mandates oil producers to drill within specified timelines or risk losing their license areas. The NUPRC also launched a bid round for new oil blocks earlier this year, during the Offshore Technology Conference in Houston, Texas, drawing interest from major players, including TotalEnergies.

In a recent interview, Komolafe reaffirmed the commission’s commitment to transparency and accountability, which he considers vital to sustaining investor confidence and boosting government revenues. “We are a patriotic and transparent regulator,” he said.

“If you have a regulator that is not transparent, it sends the wrong signal to the international community. Our commitment is to ensure Nigeria recovers revenue in royalties and other streams while maintaining transparency for accountability.”