The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted a total of ₦8.503 trillion to the Federation Account between January and December 2025, establishing itself as the single highest revenue-contributing agency in Nigeria during the period. The figure, disclosed in official revenue allocation documents presented at Federation Accounts Allocation Committee (FAAC) meetings, represents a robust 17 per cent increase from the ₦7.265 trillion remitted in 2024.
The strong performance underscores the continued dominance of upstream oil and gas revenues in Nigeria's public finances, even as the country pursues economic diversification. NUPRC's inflows significantly outpaced other major revenue-generating agencies. For comparison, the Nigeria Customs Service (NCS) transferred approximately ₦4.04 trillion over the same period, while the Ministry of Solid Minerals Development contributed just ₦68.1 billion.
Breakdown of the NUPRC remittance shows that oil and gas royalties formed the overwhelming majority, accounting for ₦7.81 trillion—nearly 92 per cent of the total. Gas flaring penalties added ₦611.4 billion, reflecting stricter enforcement of environmental regulations and penalties on operators. Smaller contributions came from concession rentals, signature bonuses, and other oil-related levies.
Royalty collections exhibited monthly fluctuations tied to global crude oil prices, production volumes, and operational efficiencies. The highest monthly inflow was recorded in October 2025 at ₦807.1 billion, benefiting from elevated international oil prices during that period. In contrast, the December remittance stood at ₦649.6 billion, representing just over half of the commission's monthly budget target. Officials attributed the shortfall to crude price volatility in the final quarter of the year and production challenges, including pipeline vandalism and underperformance against OPEC quotas.
Despite the December dip, overall annual performance remained strong, supported by legacy inflows and recoveries from long-outstanding obligations. The commission confirmed that it successfully recovered significant dollar-denominated payments owed by petroleum operators, bolstering total remittances shared among federal, state, and local governments through the Federation Account.
NUPRC's 2025 achievement highlights the sector's enduring fiscal importance amid persistent headwinds. Nigeria's crude production averaged below assigned OPEC+ quotas throughout the year, constrained by oil theft, sabotage of critical infrastructure, aging facilities, and delayed investments in upstream projects. Gas flaring penalties, while substantial, also indicate ongoing compliance gaps despite national commitments to zero routine flaring by 2030.
The commission has intensified efforts to address these issues, including enhanced metering at production sites, deployment of surveillance technologies, and closer collaboration with security agencies to curb crude oil theft. These measures contributed to improved revenue capture in 2025 compared with previous years.
The ₦8.503 trillion remittance arrives at a critical time for Nigeria's fiscal framework. The Federation Account remains the primary source of statutory transfers to the three tiers of government, funding recurrent expenditure, debt servicing, and capital projects. Higher upstream revenues in 2025 provided welcome relief amid pressures from inflation, naira depreciation, and rising debt service obligations.
Economists and policy analysts note that while the performance is commendable, long-term fiscal sustainability requires accelerating non-oil revenue mobilisation and reducing dependence on volatile hydrocarbon earnings. The South-West states' proposed ₦8.7 trillion combined budget for 2026, for instance, reflects growing subnational ambitions that hinge partly on robust FAAC allocations.
NUPRC's leadership has described the 2025 remittance as evidence of effective regulatory oversight and improved revenue administration under the Petroleum Industry Act (PIA) framework. The commission continues to implement reforms aimed at attracting investment, enforcing local content, and optimising fiscal terms to maximise national benefits from upstream activities.
Looking ahead, stakeholders expect 2026 remittances to remain sensitive to global oil market dynamics, domestic production recovery, and the pace of infrastructure repairs. Sustained efforts to curb theft, boost output toward 2 million barrels per day, and enforce environmental compliance will be key to maintaining or exceeding the 2025 benchmark.
The record remittance reinforces the upstream sector's pivotal role in Nigeria's economy, even as diversification gains traction through agriculture, solid minerals, manufacturing, and services. For now, the NUPRC's performance in 2025 stands as a clear demonstration of the revenue potential when regulatory enforcement, operational stability, and market conditions align favourably.
