Energy Group Applauds NUPRC’s ₦12tn Milestone, Cites Regulatory Discipline

Energy Group Applauds NUPRC’s ₦12tn Milestone, Cites Regulatory Discipline

The Energy Governance Alliance (EGA) has hailed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for generating a historic ₦12.25 trillion in 2024 revenue, describing it as a direct outcome of strategic reforms and decisive leadership under the Commission’s Chief Executive, Gbenga Komolafe.

In a statement released Tuesday and signed by its Executive Director, Dr. Kelvin Sotonye William, EGA said the achievement marks a watershed in Nigeria’s oil and gas regulatory history, crediting NUPRC’s transparency, enforcement, and operational discipline.

According to NUPRC’s 2024 Annual Report, the ₦12.25 trillion haul represents a 182.25 percent increase over the ₦4.34 trillion generated in 2023. It also significantly surpassed the Commission’s projected ₦6.93 trillion for the year by over ₦5 trillion.

“The Energy Governance Alliance welcomes this stellar performance under the visionary leadership of Mr. Gbenga Komolafe,” said Dr. William. “This is not a fluke; it reflects strong policy direction, increased compliance, and effective enforcement—especially on royalties, gas flare penalties, and lease renewals. These are the cornerstones of energy sector justice.”

A breakdown of the revenue shows that oil and gas royalties alone contributed ₦11.08 trillion. Gas flare penalties generated ₦391.26 billion, lease renewals yielded ₦230.73 billion, signature bonuses accounted for ₦369.57 billion, while concession rentals, miscellaneous income, and other sources made up the rest.

EGA commended the Commission for restoring regulatory credibility in a sector previously bogged down by inefficiency and opacity. The group said NUPRC’s performance demonstrates the viability of the Petroleum Industry Act (PIA) 2021 as a robust framework for fiscal reform and industry accountability.

“For the first time in recent history, we’re witnessing a regulator drive value from multiple revenue lines while closing leakages. This is what oil governance in the public interest looks like,” Dr. William added.

The alliance also lauded NUPRC’s decision to publicly disclose unreconciled production volumes, average daily outputs, and the Technical Allowable Rate (TAR), calling it a “welcome shift from past opacity.”

The report reveals Nigeria produced 578.5 million barrels of crude oil and condensates in 2024, with an average daily output of 1.58 million barrels per day (bpd). Joint Ventures accounted for 48%, Production Sharing Contracts 35%, Sole Risk 13%, and Marginal Fields 4%.

The TAR for the year stood at 67%, and EGA urged further collaboration to raise production efficiency.

Particularly noteworthy, the alliance said, were revenues from gas flare penalties and lease renewals, both of which outperformed projections by over 200%. Gas flare penalties alone brought in ₦391 billion against a ₦126 billion target, while lease renewals brought in nearly three times the expected ₦80.6 billion.

“Gas flaring is both an ecological offence and an economic waste. That penalties have become a major revenue stream signals renewed commitment to environmental responsibility,” the group noted.

EGA urged the Federal Government to reinvest part of the NUPRC’s surplus in host communities, clean energy initiatives, and Niger Delta infrastructure.

“This performance proves Nigeria’s oil sector can deliver both revenue and reform—if anchored in competence and regulatory independence.

We urge President Bola Tinubu to continue backing these reforms and protect the Commission from undue political influence,” Dr. William said.