The presidency has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its outstanding performance, following the agency’s disclosure that it generated a record N20.4tn in revenue over a three-year period.
In 2024 alone, the upstream regulator posted a revenue of N12.25tn, up from the N4.3tn generated in 2023.
In a statement by Tinubu’s special adviser on information and strategy, Bayo Onanuga, the presidency described the achievement as a testament to the effectiveness of his administration’s reforms in the oil and gas sector, praising the Gbenga Komolafe-led commission for its transparency, efficiency, and commitment to national development.
The presidency said, “The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), a regulatory agency in the energy sector, has reported remarkable progress under President Bola Tinubu, the leader whom the misguided, anti-progress elements in the so-called coalition of hate want to remove from office. According to the NUPRC report for 2024, revenue growth hit a record high that year.
“This success is not isolated. Agencies like the NNPC and the Nigeria Revenue Service have also posted record results in recent months. These achievements demonstrate that the Tinubu administration is making progress, as it is delivering tangible results in key sectors.
“It is unthinkable that some groups, united by hate and consigned to political wilderness, are calling for political change. The facts are clear: in two years, the Tinubu administration has beaten the records of all previous governments, including 16 years of PDP in power.”
In the financial year of 2024, the NUPRC revealed in its Annual Report obtained by THE WHISTLER that it surpassed its revenue target of N6.9tn in 2024 by 176.7 per cent to a record N12.25tn.
In 2024 budgeted revenue, the NUPRC projected N6.42tn as Royalties (Oil and Gas +NNPCL Receivables) but it achieved 172.5 per cent per cent of N11.08tn as actual collection.
It budgeted 2024 revenue for gas flared penalties was N126.3bn but it realized N391.26bn, up by 309.75 per cent, while Concession Rentals projection was N8.7bn, the actual revenue collected was N23.7bn, up 271.45 per cent.
The NUPRC budgeted to make N16.1bn as Miscellaneous Oil Revenue but it posted an actual revenue of N35.2bn while the Lease Renewal actual revenue was N230.73bn up by 286 per cent as against the budgeted N80.6bn.
In 2024, it made N369.57bn from signature bonus which is 146.98 per cent higher than the N251.45bn it projected.
Another revenue item, Good and Valuable Consideration generated N117bn for the NUPRC which represents 480 per cent higher than the projected N24.37bn.
In 2024, the commission’s Cost of Revenue Collection (CORC) was N279.69bn, up from the N114.84tn in 2023 while the Internally Generated Revenue (IGR) for 2024 was N1.65bn compared to N3.49bn in 2023
Consequently its revenue head which is made up of CORC and IGR was N281.34bn and N118.33bn in 2024 and 2023 respectively.
On its 2024 expenditure, NUPRC spent N85.87bn on overhead, representing 44.9 per cent, N63.2bn was spent on personel cost representing 33.1 per cent while capital expenses gulped N41.98tn or 21.97 per cent of expenditure.
For 2022, 2023 and 2024, the NUPRC generated N20.45tn.
A breakdown shows that the commission posted N3.78tn in 2022, N4.34tn in 2023 and N12.25tn in 2024.
“Revenue performance increased by 114.8 per cent in 2023 when compared with 2022 and 282 per cent in 2024 when compared with 2023,” the commission said in its report.
The performance by the NUPRC is underpinned by the CCE, Komolafe’s steady positioning of the commission not just as a regulatory watchdog but as a catalyst for reform in the Nigerian upstream sector.
From tackling crude oil theft to improving hydrocarbon measurements and enabling local ownership of oil assets through a transparent International Oil Company (IOC) assets divestment, Komolafe is reshaping the rules of engagement as enshrined in the Petroleum Industry Act, 2021 and the Renwed Hope Agenda of president Tinubu.
Experts believe that Komolafe brought transparency to hydrocarbon accounting through Metering Systems Audit & Optimisation to align with international standards and Advance Cargo Declaration for tracking and avert revenue leakages.
Energy experts also believe that one of the most significant milestones in his tenure came with the recent submission of the Engineering Audit Report on Nigeria’s upstream measurement systems by PE Energy Limited.
The audit, which covers on-site inspections of metering facilities, aims to redefine how Nigeria accounts for and monetizes its oil resources.
“The results will redefine how Nigeria manages and monetizes its most vital natural resource,” Komolafe said during the report presentation, underscoring his focus on revenue optimization and transparency.
Komolafe’s reform was also instrumental in navigating the complex divestment of oil assets by International Oil Companies.
Eni’s sale of Nigerian Agip Company Ltd (NAOC) to Oando Plc; Equinor’s assets sale to Project Odinmim Investment Ltd; TotalEnergies- Telema Energies assets sale; ExxonMobil sale of Mobil Producing Nigeria Unlimited (MPNU) to Seplat and SPDC acquisition by Renaissance have all been approved successfully, paving the way for greater indigenous participation in the sector.
These divestments have shifted the balance of control in Nigeria’s oil production landscape.
Local companies now account for a growing share of daily crude output, which recently hit 1.7 million barrels per day.
