The Energy Governance Alliance (EGA) has recommended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for producing a file N12.25 trillion in income in 2024, describing it as a testomony to the fee’s regulatory reforms and strategic management below Chief Executive, Gbenga Komolafe.
In a press release issued on Tuesday and signed by its Executive Director, Dr Kelvin Sotonye William, the alliance stated the income achievement marked a watershed second in Nigeria’s oil and gasoline sector, affirming NUPRC’s central position in repositioning the upstream trade for worth creation, fiscal accountability and nationwide improvement.
The determine, disclosed within the fee’s newly launched 2024 Annual Report, represents a 182.25 % improve from the N4.34 trillion generated in 2023. It additionally considerably surpassed the 2024 forecast income of N6.93 trillion by over N5 trillion.
“The Energy Governance Alliance welcomes the stellar performance of the NUPRC, under the visionary stewardship of Mr Gbenga Komolafe, for generating over N12 trillion in 2024 — the highest ever recorded in a single year in Nigeria’s upstream sector,” the assertion reads.
“This performance is not accidental. It reflects sustained policy clarity, increased compliance, and a bold enforcement posture on critical issues such as royalty payments, gas flare penalties and lease renewals. These are the very foundations of energy justice, and we applaud the Commission for restoring regulatory credibility in a sector long plagued by opacity and inefficiency.”
EGA stated the unprecedented income influx has “revalidated the Petroleum Industry Act (PIA) 2021 as a working framework for revenue optimisation, investor discipline and upstream transparency”, including that the Komolafe-led NUPRC had damaged new floor in actualising the fiscal and institutional aspirations of the landmark regulation.
According to the fee’s breakdown, oil and gasoline royalties alone accounted for N11.08 trillion in 2024 — almost twice the projected determine — whereas gasoline flared penalties introduced in N391.26 billion, and concession leases fetched N23.71 billion. Other key income traces included N369.57 billion from signature bonuses, N230.73 billion from lease renewals, N35.19 billion in miscellaneous earnings, and N117.02 billion from items and precious consideration.
Reacting to the figures, Dr William stated the size and unfold of the income efficiency demonstrated a “whole-of-sector approach” that has closed long-standing loopholes and challenged entrenched rent-seeking behaviour.
“For the first time in recent memory, we are seeing a regulator extract value from multiple pressure points across the upstream system — from flare penalties to lease administration. This is what it means to govern oil in the public interest,” he stated.
EGA urged different companies within the oil and gasoline ecosystem to emulate NUPRC’s results-oriented tradition, noting that the fee’s transparency in publishing unreconciled manufacturing volumes, common each day outputs, and compliance with the technical allowable charge (TAR) regime was “a welcome deviation from the era of secrecy”.
The report had revealed that whole crude manufacturing in 2024 stood at 578.5 million barrels — comprising 482.8 million barrels of oil and 95.7 million barrels of condensate — with a each day common output of 1.58 million barrels per day. Joint ventures contributed 48 % of the manufacturing, adopted by manufacturing sharing contracts at 35 %, sole danger operations at 13 %, and marginal fields at 4 %.
The alliance additionally welcomed NUPRC’s disclosures on the TAR, which stood at 67 % in 2024, and urged additional collaboration with trade gamers to lift effectivity ranges.
“This is not just about revenue. It’s also about regulatory honesty. By publishing unreconciled volumes and clarifying that they are not to be mistaken for export figures, NUPRC has sent a strong message that it is no longer business as usual. This level of transparency is key to improving investor confidence and public trust,” William stated.
EGA stated it was notably impressed with the fee’s efficiency in gasoline flare penalties and lease renewals, which surpassed their 2024 projections by over 200 %, indicating renewed rigour in enforcement.
It famous that N391 billion was realised from gasoline flaring penalties, in comparison with a projected N126 billion, whereas lease renewals introduced in N230.73 billion, virtually 3 times the forecasted N80.63 billion.
“Gas flaring is an ecological crime and an economic waste. The fact that penalties have become a major revenue item shows the Commission’s zero-tolerance stance. We expect this to further push operators towards cleaner and more responsible energy production,” the alliance added.
The alliance urged the Federal Government to channel a good portion of the NUPRC’s income surplus into supporting host communities, funding clear power transitions and shutting infrastructure gaps within the Niger Delta.
“Komolafe’s performance shows that Nigeria’s oil sector can deliver both revenue and reform — if we prioritise competence, clarity and courage. The Energy Governance Alliance urges President Bola Ahmed Tinubu to continue backing such reforms and ensure that the NUPRC remains insulated from political interference,” the assertion concluded.
