MIchael Eboh
Dublin, Ireland — Oil and gas companies operating in the country paid N289.306 billion in penalties to the Federal Government in 11 months, between January and November 2025, rising sharply by 125.27 per cent when compared with N128.424 billion recorded in the same 11-month period in 2024.
According to financial data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), collection from gas flare penalties accounted for 3.07 per cent of the commission’s total revenue of N9.411 trillion, being the amount collected from oil and gas companies in the period under review.
The NUPRC noted that it also collects oil and royalties, concession rental, and other miscellaneous oil and gas fees.
Giving a breakdown of its revenue from gas flared penalties, the NUPRC disclosed that in January, February, March and April 2025, it recorded N22.724 billion, N20.046 billion, N19.766 billion and N24.139 billion, respectively.
Continuing, it noted that it collected N42.854 billion, N23.939 billion, N25.413 billion and N28.002 billion, in May, June, July and August 2025, respectively; while in September, October and November 2025, the companies paid penalties of N25.694 billion, N28.796 billion, and N27.929 billion, respectively.
In comparison, in the same 11-month period of 2024, the NUPRC stated that it did not receive any payments for gas flare penalties for January, February and March; while it collected N13.588 billion, N11.88 billion, N15.11 billion and N16.62 billion in April, May, June and July 2024, respectively.
Additionally, The NUPRC stated that gas flare penalties collected from defaulting oil firms stood at N17.758 billion, N21.69 billion, N12.94 billion and N18.85 billion in August, September, October and November 2024, respectively.
Explaining its performance for the period, the NUPRC said: “The amount transferred to the Federation Account in November 2025 was N660.041 billion, while the total amount transferred by the Central Bank of Nigeria (CBN) from January to November 2025 was N7.749 trillion.
“The Commission’s performance from January to November 2025 is N9.411 trillion, which is inclusive of NNPC Limited Joint Venture (JV) & Production Sharing Contract (PSC) Royalty Receivables of N977.12 billion, for the period of January to November 2025 and Project Gazelle receipt of N835.689 billion for the same period.”
For its November 2025 financials, the NUPRC noted that it collected N660.041 billion in November 2025, representing a percentage performance of 54.78 per cent compared to its budgeted target.
It added that total collection decreased by 24.4 per cent or N213.064 billion, when compared with N873.105 billion collected in October 2025.
In comparison with the approved monthly budget of N1.205 trillion, the NUPRC stated that it recorded a negative variance of N544.761 billion, an equivalent of 45.22 per cent,
The upstream regulator blamed the poor performance in relation to its budget, on fluctuation in crude oil price and a shortfall in crude oil production.
It added that “We confirm receipt of $1.805 million in the month under review from the cumulative outstanding amount of $101.981 million expected from PSC, and Modified Carrying Agreement (MCA) liftings, leaving a balance of $100.156 million. The amount of $1.805 million received is part of the total collection reported above for sharing by the Federation this month.”
