Recent figures disclosed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reveal a remarkable 176.7% increase in revenue for the year 2024, amounting to N12.2 trillion, a stark rise from the preceding year.
In the last fiscal year, the commission’s total revenue was recorded at N3.7 trillion, a drop from N4.3 trillion in 2023, but it rebounded strongly to N12.2 trillion in 2024.
Personnel expenses accounted for 33.10% of total expenditure, totalling N63.2 billion; overhead costs were N85.8 billion, representing 44.9%; while capital expenditures reached N41.9 billion, or 21.9%.
Additionally, the Cost of Revenue Collection (CORC) rose to N271 billion from N114.8 billion in 2023, with Internally Generated Revenue (IGR) standing at N1.6 trillion.
The 2024 annual report indicated that the commission recorded 732 environmental incidents, including blowouts, corrosion, equipment failures, and various operational errors.
In terms of gas supply, an average of 77% of the daily Domestic Gas Delivery Obligation (DGDO) was achieved, despite significant challenges such as inadequate infrastructure, unreliable offtakers, and security issues.
Moreover, producers have formally requested waivers regarding their domestic oil supply commitments, citing a range of reasons.
Nigeria’s ongoing domestic crude oil supply issues pose a significant threat to the energy sector’s stability. Despite its status as one of Africa’s largest oil producers, the country struggles to provide a consistent supply of crude oil to its refineries, both public and modular.
The root of the problem lies in Nigeria’s insufficient production capacity for local refinement and export. The nation has been largely dependent on fuel imports due to the underperformance of government-owned refineries in Port Harcourt, Warri, and Kaduna.
Pipeline vandalism and oil theft further hamper crude availability, with critical pipeline sabotage making transportation both risky and costly, leading operators to reduce production or incur high rerouting expenses.
The report notes that the commission has faced numerous appeals from various stakeholders requesting waivers on their monthly obligations or providing reasons for potential shortfalls.
To address domestic oil supply challenges, a working committee comprising representatives from the NUPRC, Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), and the Crude Oil Refinery-Owners Association of Nigeria (CORAN) has been established to develop a framework for the Domestic Crude Supply Obligations (DCSO) policy.
Due to complaints regarding refiners’ participation in curtailment meetings, the commission has temporarily suspended their attendance until further notice.
Despite these challenges, the NUPRC remains committed to facilitating crude allocation to local refineries, ensuring transparency by making relevant information available on its website.