Oil Reforms Pay Off As NUPRC Revenue Hits N12.2tn In 2024

Nigeria’s oil and gas reforms are yielding benefits for the country as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has generated a record revenue of N12.2tn in 2024.

This is the highest revenue posted by the regulator and it represents an increase of 183.7 per cent compared to 2023’s N4.3tn revenue.

A breakdown of the financial statement shows that Gbenga Komolafe-led NUPRC’s Internally Generated Revenue (IGR) rose to N1.6bn during the period.

The Cost of Revenue Collection (CORC) during the review period was N271bn compared to N114.8bn in 2023.

The data reveals that overhead stood at N85.8bn, representing 44.9 per cent of expenditure while personnel cost constituted 33.10 per cent of spending, at N63.2bn.

Also, capital expenditure was N41.9bn, representing 21.9 per cent of spending.

NUPRC disclosed that a total of 732 environmental incidents were recorded in the year under review.

These incidents included blowouts, corrosion, equipment failure, unexplained or ‘mystery’ occurrences, natural accidents, operational and maintenance errors, sabotage, and other issues.

On gas supply, the report noted that only 77 per cent of the total daily Domestic Gas Delivery Obligation (DGDO) was met on average.

It noted that factors responsible for this underperformance included inadequate in-country gas infrastructure and lack of interconnectivity, gas transmission pressure issues, unreliable offtakers failing to take up allocated volumes, gas inventory constraints, limitations in grid power infrastructure, and persistent security challenges.

Similarly, the commission revealed that some producers submitted formal letters requesting waivers or explaining their inability to meet mandated domestic oil supply volumes.

The report disclosed, “The commission received several pushbacks from IPPG, OPTS, some producers and their equity partners via formal letters, either requesting for waivers on the allocated monthly obligations, or giving detailed explanations why they might not be able to meet up with the allocated volumes etc.”

The report noted that a dedicated working committee was established, comprising representatives from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Oil Producers Trade Section (OPTS), the Independent Petroleum Producers Group (IPPG), and the Crude Oil Refinery-Owners Association of Nigeria (CORAN). The committee was constituted to address the persistent challenges surrounding the domestic supply of crude oil to local refineries.

The panel was mandated to develop a robust and comprehensive framework for the effective implementation of the Domestic Crude Supply Obligations (DCSO) policy.

It added, “Following several complaints from operators about the presence of refiners at curtailment meeting, another letter was sent to refiners, notifying them of the commission’s decision to put all refiners’ attendance at the monthly Production Curtailment Meeting (PCM) on hold temporarily till further notice.”