NUPRC Exceeds Revenue Target by 49%
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has achieved a remarkable 49% increase in revenue, surpassing its target, even as global oil and gas producers face reduced royalties and shrinking profit margins.
This success comes despite significant challenges in the sector, including global shifts toward energy transition and its impact on oil and gas investments.
The revenue boost was revealed during a public hearing hosted by the National Assembly’s Joint Committees on Finance and Planning, which focused on the 2025–2027 Medium Term Fiscal Framework (MTF) and Fiscal Strategy Paper (FSP).
By October 2024, NUPRC had already exceeded its revenue target by 49%, providing the government with additional funds to help address its budgetary deficits.
This achievement is attributed to the NUPRC’s reforms in Nigeria’s upstream sector, leveraging regulatory measures to plug financial gaps and attract substantial investments, despite the ongoing divestment of certain oil and gas assets.
The commission was created by the Petroleum Industry Act (PIA) of 2021, with Engr. Gbenga Komolafe serving as the inaugural Chief Executive Officer. Under Komolafe’s leadership, the NUPRC has consistently exceeded its revenue targets.
Commenting on the achievement, Komolafe expressed confidence that the commission would continue to build on this momentum through various ongoing initiatives. These include the “One Million Barrels Per Day” project, bid rounds, and the “Drill or Drop” program, all part of the commission’s broader mandate under the PIA.
One of the key initiatives, launched in October 2024, is the “One Million Barrels Per Day” initiative, which aims to boost Nigeria’s oil production to over 2.7 million barrels per day.
Komolafe also spearheaded the launch of a bid round for oil blocks at the Offshore Technology Conference in Houston, Texas, in May 2024. This event attracted key investors, including TotalEnergies, signaling strong interest in Nigeria’s oil and gas sector.
Another contributing factor to the NUPRC’s revenue growth is the “Drill or Drop” initiative, which requires oil producers to either drill a well within a specific timeframe or forfeit their license to operate in the designated area.
According to reports, NUPRC has maintained a commitment to transparency in its operations, following the framework outlined in the Federation Accounts, which has led to increased revenue flowing into the national treasury over the past three years.
“We are a patriotic and transparent regulator, committed to serving the nation effectively,” said Komolafe in a recent interview. “If a regulator is not transparent, it sends the wrong message to the international community.”
He continued, “Our work is essential in helping the country recover revenue through royalties. This is just one part of our responsibility, and our focus on transparency ensures a seamless process that promotes accountability and supports national revenue recovery.”
