The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission, earned N5.21 trillion from crude oil, gas sales, and other related activities in the first half of 2025. This amount accounts for 42.7% of the record N12.2 trillion generated throughout the entire 2024 fiscal year.

However, this figure represents only 34.7% of the N15 trillion revenue target set by the Federal Government for the commission to support the implementation of the 2025 budget. The revenue sources include royalties, gas sales, flared gas penalties, and joint venture proceeds.

According to the commission’s latest report presented at the Federation Accounts Allocation Committee meeting, the earnings from January to June 2025 include N1.04 trillion from Nigerian National Petroleum Company Limited joint venture and production sharing contract royalty payments.

The report also shows N315.93 billion from the controversial Project Gazelle receipts for January and March 2025, with no recorded inflows in December 2024, February, April, May, and June 2025.

The report read, “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).”

Additionally, NNPC’s joint venture royalty receivables from October 2022 to June 2025 totaled N6.60 trillion, highlighting the cumulative effect of delayed payments from oil companies.

To support the smooth implementation of the 2025 budget, the commission has set a revenue target of N15 trillion for the year.

The NUPRC Chief Executive, Gbenga Komolafe, confirming the target, said, “And we all know the importance of that; we’re ramping up federal revenue. Last year, that is for 2024, you remember that the commission achieved and surpassed its revenue generation by about 163 per cent. This year, our target has been increased to about N15tn.

“So, the commission, recognising that, we have equally devised a strategy. Of course, N15tn is so large, but then we are not daunted; we are not intimidated. Rather, we are defining a strategic approach to achieve that target.”

The report also confirmed the recovery of $459,226 from outstanding debts, which form part of a cumulative $1.436 billion owed from various crude oil lifting contracts, leaving an outstanding balance of $1.435 billion.

The NUPRC noted that this recovered amount was part of the revenue-sharing reconciliation between NNPCL and the Federation, supervised by the Technical Sub-Committee of the Alignment Committee on the Reconciliation of Indebtedness.

The commission’s mid-year revenue falls short of the expected proportional benchmark against its N12.25 trillion total earnings for 2024. If the current trend continues, revenues may finish the year below target unless there is a significant boost in oil production and faster clearance of arrears.