The Nigerian Upstream Petroleum Regulatory Commission has announced it generated a total of ₦28.11 billion from miscellaneous oil revenue linked to licence fees and renewals between January and May 2025.
This development comes as more than 40 holders of Petroleum Prospecting Licences rush to meet the commission’s requirements for renewing their permits, which are set to expire by the end of June 2025.
According to The PUNCH, data submitted to the Federation Accounts Allocation Committee, the commission’s revenue came from fees tied to granting approvals for various licences and permits under what it described as “miscellaneous oil revenue.”
However, the breakdown of earnings by specific licence type was not disclosed.
The month of April recorded the highest inflow, with ₦10.04 billion collected. This was followed by ₦9.19 billion in January, ₦3.64 billion in February, ₦2.18 billion in March, and ₦3.04 billion in May.
Industry sources attribute the increase in non-royalty income to recent reforms in NUPRC’s licensing procedures. These include a mandatory $5,000 processing fee and the submission of 13 essential documents for licence extensions.
A notification sent earlier this year to licence holders reminded them of their approaching deadlines.
In a letter titled “Notification of PPL Tenure Expiration And Conditions For Extension,” NUPRC Chief Executive Gbenga Komolafe stated:
“Following the award of a Petroleum Prospecting Licence during the 2020 Marginal Field Bid Round, a review of our records indicates that your PPL will expire on 27th June 2025, in accordance with the terms of the licence.”
Citing Section 77 of the Petroleum Industry Act 2021 and related 2022 regulations, Komolafe noted that companies could seek an optional three- or five-year extension.
However, such renewals would depend on the fulfilment of obligations, including the Minimum Work Programme and Financial Commitments tied to the original award.
The Federal Government, which has set a ₦15 trillion revenue target for the commission this year, has expressed satisfaction with its performance.
Total upstream revenue from royalties, penalties, rentals, and miscellaneous sources surpassed ₦3 trillion between January and May 2025.
A closer look at the FAAC report showed oil royalties contributed ₦2.56 trillion, while gas flaring penalties stood at ₦201 billion. Concession rentals and miscellaneous oil revenue added ₦29.1 billion and ₦28.1 billion, respectively.
Despite national and international commitments to end routine gas flaring by 2030, the commission continues to rake in significant revenue from penalties imposed on defaulters.
Monthly earnings from gas flaring penalties ranged from ₦30.4 billion to ₦55.1 billion, making it one of the top income sources for the upstream regulator.