The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has recorded a total of N28.11 billion in miscellaneous oil revenue within the first five months of 2025, primarily from licensing fees and renewals. This figure, fully remitted to government coffers, comes amid a rush by over 40 Petroleum Prospecting Licence (PPL) holders to renew their permits ahead of a June 27, 2025 expiration date. According to monthly revenue data submitted to the Federation Accounts Allocation Committee (FAAC), the highest revenue haul came in April with N10.04 billion, followed by N9.19 billion in January, as the commission tightened its licensing regime.
The commission introduced new policies requiring oil producers to pay a $5,000 processing fee and submit 13 mandatory documents for PPL renewals. In a formal notice to licence holders, NUPRC Chief Executive Gbenga Komolafe reminded companies of their obligation under Section 77 of the Petroleum Industry Act 2021 and 2022 Extension Regulations. These stipulate that only firms meeting their Minimum Work Programme and financial commitments may qualify for an optional three- or five-year extension. The commission is expected to generate even more revenue if all current PPL holders proceed with renewal applications before the deadline.
Despite ongoing efforts to transition toward a net-zero future by 2030, the broader upstream sector continues to generate significant revenue from environmentally contentious sources. Total upstream earnings from January to May 2025 surpassed N3 trillion, with oil royalties contributing N2.56 trillion and gas flaring penalties adding N201 billion—highlighting the persistent environmental toll. Gas flaring, in particular, brought in N36.6 billion in January and peaked at N55.1 billion in March, making it one of the commission’s top revenue streams. The NUPRC is aiming to raise N15 trillion in total revenue this year, underscoring the sector’s central role in federal earnings amid Nigeria’s evolving energy landscape.
