FG Raises N5.21 Trillion from Oil Sales in First Half of 2025 Despite Revenue Challenges

The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), recorded revenue of N5.21 trillion from crude oil, gas, and related economic activities during the first six months of 2025. This figure accounts for approximately 42.7% of the total N12.2 trillion revenue generated by the commission in the entire 2024 fiscal year.

However, this mid-year revenue represents only 34.7% of the N15 trillion target set by the Federal Government for the commission to meet as part of the 2025 budget implementation. The income was derived from multiple sources including royalties, gas sales, flared gas penalties, and joint venture proceeds.

According to the latest report submitted at the Federation Accounts Allocation Committee meeting, payments from the Nigerian National Petroleum Company Limited’s (NNPC Ltd) joint venture and production sharing contract royalty receivables contributed N1.04 trillion to the period’s revenue.

Also noted were N315.93 billion from the controversial Project Gazelle receipts for January and March 2025, with no inflows recorded during December 2024 and several months in 2025 including February, April, May, and June.

The report states, “Revenue Performance: The commission’s performance from January to June 2025 is N5.21tn which is inclusive of NNPC Ltd JV & PSC Royalty Receivables of N1.04tn for the period of January to June 2025 and Project Gazelle receipt of N315.93bn for November 2024 (received in January 2025).”

Further figures indicate that NNPC’s joint venture royalty receivables from October 2022 to June 2025 totalled N6.60 trillion, highlighting the ongoing impact of delayed payments by oil companies.

NUPRC CEO Gbenga Komolafe reaffirmed the commission’s revenue target of N15 trillion for 2025, emphasizing the government’s commitment to boosting federal revenue despite the ambitious nature of the goal.

Komolafe said, “We are ramping up federal revenue. Last year, the commission surpassed its revenue generation target by about 163%. This year, we have increased the target to about N15tn. We have devised a strategic approach to achieve this, and though the target is large, we are determined to meet it.”

The report also confirmed the recovery of $459,226 from outstanding obligations, a portion of a cumulative debt of $1.436 billion from crude oil lifting contracts, leaving a balance of $1.435 billion. This recovery was part of revenue-sharing reconciliations between NNPCL and the Federation, overseen by a technical sub-committee.