The Energy Governance Alliance (EGA) has called on the Federal Government to use part of the N12.25 trillion revenue generated by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, in 2024 to improve the lives of oil-producing communities, support clean energy projects, and fix infrastructure in the Niger Delta.
DAILY POST reports that the call followed the release of NUPRC’s 2024 Annual Report, which showed the Commission generated a record-breaking N12.25 trillion in revenue, a 182.25% increase from the N4.34 trillion generated in 2023, and over N5 trillion above the projected N6.93 trillion for the year.
EGA, in a statement signed by its Executive Director, Dr Kelvin Sotonye William on Wednesday, described the revenue performance as a turning point in Nigeria’s oil and gas industry and a reflection of strong regulatory leadership under NUPRC Chief Executive, Gbenga Komolafe.
“The NUPRC’s extraordinary performance must translate into real development for the people in the oil-producing areas,” Dr William said. “This is the time for the government to ensure host communities benefit directly from the wealth generated in their backyard, and to accelerate the shift toward clean, sustainable energy systems.”
According to the Commission, oil and gas royalties alone contributed N11.08 trillion, while gas flare penalties brought in N391.26 billion — over 200% more than projected. Lease renewals fetched N230.73 billion, almost triple the forecasted N80.63 billion.
Other revenue sources included N369.57 billion from signature bonuses, N23.71 billion from concession rentals, N35.19 billion in miscellaneous income, and N117.02 billion from goods and valuable consideration.
EGA noted that such a robust revenue outcome was not accidental but stemmed from sustained policy clarity, stronger industry compliance, and an aggressive enforcement approach on royalty payments, lease obligations, and environmental penalties.
“This is what happens when a regulator takes governance seriously. We’re seeing a shift away from the culture of opacity to one of transparency and accountability,” the alliance said.
It also highlighted the Commission’s efforts in publishing previously reconciled crude production figures, daily output levels, and compliance with the Technical Allowable Rate (TAR), which stood at 67% in 2024. Total crude production for the year hit 578.5 million barrels, with an average daily output of 1.58 million barrels.
EGA said the gains in gas flare penalties, N391 billion collected compared to the N126 billion projected, showed a regulatory system no longer tolerating ecological waste.
“Gas flaring is an environmental and economic crime. The fact that these penalties now make up a major portion of revenue tells us the Commission is enforcing the law with new seriousness,” Dr William said.
The alliance stressed that the momentum must be matched by political will at the federal level to reinvest meaningfully in the affected communities and support Nigeria’s energy transition goals.
“Komolafe’s success proves that Nigeria’s oil sector can work but the next step is ensuring the people most impacted by oil exploration also benefit from the wealth it generates,” EGA said.
“We urge President Bola Tinubu to keep this reform spirit alive, insulate the Commission from political pressures, and make sure that revenue works for people, not just balance sheets,” it concluded.
