The Nigerian Upstream Petroleum Regulatory Commission has remitted a record N8.503tn revenue to the Federation Account jointly run by the federal, state, and local governments, between January and December 2025, The PUNCH reports.

The amount represented a 17 per cent increase over the N7.265tn remitted in 2024 and emerged as the highest contribution by any revenue-generating agency to the federation.

This is according to an analysis of the NUPRC revenue collection documents from January to December 2025, presented at the Federation Accounts Allocation Committee meeting and obtained by The PUNCH on Wednesday.

The 2025 remittance came at a time when the Federal Government intensified efforts to stabilise crude oil production, improve fiscal transparency, and recover outstanding oil and gas revenues, including legacy obligations owed by operators, as pressure mounts on public finances amid rising debt service costs and competing demands from the three tiers of government.

The document showed that the commission’s remittance rose by N1.238tn year-on-year, underscoring the continued dominance of upstream oil and gas revenues in Nigeria’s public finances.

The document stated, “The total amount transferred by the Central Bank of Nigeria from January to December 2025 is GN8,503,743,954,233.78.”

The NUPRC’s remittance far exceeded that of other major revenue-generating agencies. While the Ministry of Solid Minerals Development generated N68.096bn, the Nigeria Customs Service remitted N4.04tn to the Federation Account within the same period, less than half of the oil regulator’s contribution.

A breakdown of the figures showed that oil and gas royalties contributed N7.807tn, accounting for about 91.8 per cent of the total N8.503tn remitted in 2025.

Gas flaring penalties yielded N611.416bn, representing 7.2 per cent, while concession rentals contributed N38.188bn, or 0.45 per cent. Miscellaneous oil revenues, including licences and permits, stood at N46.439bn, about 0.55 per cent of the total inflow.

Royalty inflows fluctuated significantly during the year, reflecting crude oil price movements and production constraints.

Collections stood at N641.061bn in January, N601.956bn in February, and N556.963bn in March, before rising by 35.9 per cent month-on-month to N757.028bn in April.

 Revenues eased again to N567.488bn in May and N558.84bn in June.

The second half of the year recorded a moderate recovery, with N665.125bn in July, N682.283bn in August, and N663.795bn in September. Royalties peaked in October at N807.074bn, representing the highest monthly inflow for the year, before declining to N605.263bn in November and rebounding to N700.816bn in December.

According to the Report of December 2025 Revenue Collection presented at the FAAC meeting held on January 20, 2026, the commission collected N649.55bn in December 2025.

This represented just 53.92 per cent of its approved monthly budget of N1.205tn, resulting in a negative variance of N555.25bn, or 49.09 per cent below target. The report explained, “This performance was due to fluctuation in the crude oil price and shortfall in crude oil production.”

December collections also declined slightly compared to November. “Total collection decreased by N10,488,431,245.91, equivalent to 1.59 per cent, when compared with N660,040,724,467.36 collected in November 2025,” the document stated.

Despite the budget underperformance, legacy inflows supported December revenues. The report disclosed, “The total sum of N105,583,912,514.47 due in August 2025 under Project Gazelle was collected in December 2025.”

It added that the entire N649.55bn collected in December was transferred to the Federation Account. “The amount transferred to the Federation Account in December 2025 was N649,552,293,221.45, while the total amount transferred by the CBN from January to December 2025 is N8,503,743,954,233.78,” it stated.

The NUPRC also confirmed recoveries from outstanding obligations owed by the Nigerian National Petroleum Company Limited. The report noted, “We confirm receipt of $100,156,179.31 in the month under review from the cumulative outstanding amount of $100,611,214.12 expected from PSC and MCA liftings, leaving a balance of $455,034.81.”

It clarified that the dollar inflow formed part of the revenue shared by the federation in the month under review. When outstanding receivables are included, the commission’s overall revenue performance was significantly stronger.

“The commission’s performance from January to December 2025 is N9,931,517,800,750.91, inclusive of NNPC Ltd JV and PSC royalty receivables of N742,362,837,595.14 and Project Gazelle royalties of N941,273,764,949.85,” the report stated.

The NUPRC, created under the Petroleum Industry Act 2021, is responsible for regulating Nigeria’s upstream petroleum operations and collecting statutory royalties, rents, and penalties.

Its 17 per cent year-on-year revenue growth comes amid persistent challenges in Nigeria’s oil sector, including crude oil theft, pipeline vandalism, ageing infrastructure, and production levels that have remained below OPEC quotas—factors that continue to weigh on federation revenues.

Nevertheless, the 2025 figures reaffirm the upstream oil and gas sector’s position as the single largest contributor to FAAC inflows and a critical pillar of Nigeria’s fiscal stability.