The commission performed strongly in gas flare penalties. It collected ₦61.70 billion. This surpassed both the budgeted figures and those from the previous month. It represented 105.52 percent of the monthly target. This was also a modest month-on-month increase.
Rental revenue in October also saw a positive trend. It reached ₦3.60 billion. This was higher than September’s figure of ₦2.16 billion. It represents a 65.15 percent month-on-month growth.
In contrast, miscellaneous collections dropped sharply. They amounted to just ₦0.394 billion. This figure was considerably below expected levels. It was also far less than the previous month’s ₦5.62 billion. This marks the steepest decline among all revenue categories.
Overall, October’s total revenue of ₦873.10 billion exceeded September’s performance. It surpassed the previous month by ₦131.12 billion. This reinforces a steady recovery trend. It follows earlier-year fluctuations in revenue.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has remitted a substantial ₦8.79 trillion to the Federation Account. This significant contribution occurred between January and October this year. The fund is jointly managed by the federal, state, and local governments.
Data from the Federation Account Allocation Committee (FAAC) shows further positive news. The commission recorded a significant rise in revenue inflows for October alone. NUPRC remitted a total of ₦873.10 billion to the Federation Account that month.
This figure represents a 17.67 percent increase from September 2025’s collection of ₦741.99 billion. It signals improved operational performance by NUPRC. This is notable despite persistent volatility in the crude oil market.
The funds for October came from several sources. These included royalty collections, gas flare penalties, rentals, and miscellaneous oil revenues.
Breakdown of NUPRC Remittances
The FAAC document further detailed the commission’s overall performance. From January to October 2025, NUPRC recorded ₦8.79 trillion in remittances. This total includes ₦1.02 trillion from NNPC Ltd Joint Venture (JV) and Production Sharing Contract (PSC) Royalty Receivables for the same period. It also comprises ₦835.69 billion from Project Gazelle receipts for November 2024.
NUPRC clarified specifics regarding Project Gazelle. No receivables were due for December 2024. Similarly, no payments were recorded for February, August, September, and October 2025 under this project.
October’s revenue improvements came at a crucial time for Nigeria. The federal government faces significant fiscal pressures and exchange rate challenges. Declining oil production, often due to facility downtime, also compounds these issues.
The 17.7 percent month-on-month increase offered a temporary financial breather. It boosted federal allocations. This enabled states and local governments to meet recurrent spending obligations.
Despite this, a significant shortfall against the budget persists. This represents a 27.53 percent underperformance. It highlights the urgent need for intensified efforts. These efforts include stabilizing production volumes, enforcing compliance, and deepening reforms. Such reforms are crucial across the upstream oil sector.
NNPC’s Outstanding Obligations and Recoveries
The document also detailed outstanding obligations from NNPC. At the October 2025 FAAC meeting, these amounted to $1.48 billion for oil liftings. Additionally, ₦6.33 trillion was due for royalty receivables.
From these totals, certain outstanding obligations have been “nil off.” Specifically, $1.42 billion and ₦5.57 trillion were cleared. The FAAC document confirmed: “The commission has passed the appropriate accounting entries as approved.”
Based on the FAAC report, NUPRC outlined NNPC’s remaining statutory obligations for January to October 2025. These include $56.81 million for PSC and Modified Carry Agreement (MCA) liftings. There is also ₦1.02 trillion outstanding for JV royalty receivables.
During October, NUPRC received $55.00 million from these outstanding amounts. This reduced the dollar balance to $1.80 million. The naira balance remains at ₦1.02 trillion. The received $55.00 million is part of the total collection. This total was reported for federation sharing in November.
Challenges and Performance Across Revenue Streams
Despite October’s strong month-on-month growth, collections remained below the approved monthly budget. The revenue projection was ₦1.204 trillion. However, actual collections reached only 72.47 percent of this target. This resulted in a negative variance of ₦331.70 billion.
NUPRC cited two primary reasons for this shortfall. Fluctuations in crude oil prices were a factor. A noticeable drop in crude oil production also contributed. These issues have consistently impacted government revenue projections in 2025.
Despite these ongoing challenges, NUPRC’s improved performance offers relief. Its upward trajectory from the previous month is encouraging. Federal and state governments rely heavily on oil-linked revenues.
A detailed review of revenue categories showed mixed performance. Oil and gas royalties for October totaled ₦807.08 billion. This was 70.54 percent of the monthly budget for this category. Although below target, it marked an increase of ₦143.28 billion from September’s ₦663.80 billion. This indicates a marked recovery in royalty inflows.
The commission performed strongly in gas flare penalties. It collected ₦61.70 billion. This surpassed both the budgeted figures and those from the previous month. It represented 105.52 percent of the monthly target. This was also a modest month-on-month increase.
Rental revenue in October also saw a positive trend. It reached ₦3.60 billion. This was higher than September’s figure of ₦2.16 billion. It represents a 65.15 percent month-on-month growth.
In contrast, miscellaneous collections dropped sharply. They amounted to just ₦0.394 billion. This figure was considerably below expected levels. It was also far less than the previous month’s ₦5.62 billion. This marks the steepest decline among all revenue categories.
Overall, October’s total revenue of ₦873.10 billion exceeded September’s performance. It surpassed the previous month by ₦131.12 billion. This reinforces a steady recovery trend. It follows earlier-year fluctuations in revenue.
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