The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reported a significant increase in revenue remittances to the Federation Account, with a total of 8.79 trillion collected between January and October 2025. According to a briefing note by the Commission, October 2025 saw a notable rise in revenue inflows, with 873.10 billion remitted to the Federation Account, representing a 17.67% increase from the previous month.
The revenue sources included royalty collections, gas flare penalties, rentals, and miscellaneous oil revenues. The Commission’s performance from January to October 2025 is inclusive of NNPC Ltd JV & PSC (Production Sharing Contract) Royalty Receivables of 1.02 trillion and Project Gazelle receipt of 835.69 billion for November 2024.
The NUPRC also reported that there were no receivables due for December 2024, February, August, September, and October 2025 under Project Gazelle. The outstanding obligations of NNPC, reported at the October 2025 FAAC meeting, were $1.48 billion and 6.33 trillion for oil liftings and royalty receivables, respectively. However, the Commission received Presidential Approval to ‘nil off’ the outstanding obligations of NNPC as at December 31, 2024.
The affected outstanding obligations that have been ‘nil off’ are $1.42 billion and 5.57 trillion. The Commission has passed the appropriate accounting entries as approved. The outstanding statutory obligations of the NNPC from January to October 2025 are $56.81 million and 1.02 trillion for PSC and MCA liftings and JV royalty receivables, respectively.
The Commission received $55 million in the month under review from the outstanding, leaving a balance of $1.80 million and 1.02 trillion. The amount received is part of the total collection reported for sharing by the federation in November. However, collections still fell below the approved monthly budget, primarily due to fluctuations in crude oil prices and a noticeable drop in crude oil production.
The NUPRC attributed the shortfall to these factors, which have repeatedly affected government revenue projections in 2025. For the gas flare penalty, the Commission collected 61.70 billion, representing 105.52% of the monthly target. Oil and gas royalties for October stood at 807.08 billion, representing 70.54% of the monthly budget for this category. The marked recovery in royalty inflows is a positive development, despite being below target.
