FAAC: NUPRC Remitted N6.2tn Revenue in 9 Months Despite Oil Output Fluctuations
FAAC: NUPRC Remitted N6.2tn Revenue in 9 Months Despite Oil Output Fluctuations
*Transfers represent over 11.4% of Nigeria’s N55 trillion 2025 budget
*NNPC submits report on alleged $42.3bn discrepancies
*Under-remittance document covers 2011 to 2017
*FAAC ad-committee begins review of utilisation of 30% exploration fund since 1999
Emmanuel Addeh in Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) made a total payment of N6.215 trillion to the Federation Account between January and September 2025, consolidating its position as one of the federal government’s biggest revenue contributors this year.
The figure, presented in the commission’s latest revenue report to the Federation Account Allocation Committee (FAAC) held in Abuja on October 16, 2025, reflected the cumulative transfers to the Central Bank of Nigeria (CBN) during the period under consideration.
According to the report seen by THISDAY, the amount transferred in September 2025 alone was N741.99 billion, representing 61.59 per cent of the commission’s approved monthly revenue budget of N1.204 trillion.
However, the figure fell short by N462.81 billion, or 38.41 per cent, mainly due to fluctuations in crude oil prices and shortfalls in national production during the month.
When compared with August 2025, September’s performance showed a marginal decline of just 0.43 per cent, as total collections dropped by N3.22 billion from the N745.20 billion recorded the previous month.
Last year, the NUPRC reported that it generated a revenue of N12.25 trillion, representing a 282 per cent increase from the N4.34 trillion generated in 2023. Also, the upstream regulator said it generated N3.7 trillion in 2022, much lower than the other succeeding years.
The total sum remitted to FAAC by the NUPRC so far was about 11.4 per cent of Nigeria’s 2025 national budget of roughly N55 trillion, forming a critical portion of the country’s fiscal base and helping the government implement infrastructure plans, fund social programmes, and support economic growth under the budget.
Despite the monthly dip, the NUPRC’s cumulative record for the nine months under review revealed a robust revenue stream, particularly when receivables and pending royalty settlements are included.
The commission reported that its total performance from January to September stood at N7.554 trillion, encompassing both actual collections and outstanding receivables from the Nigerian National Petroleum Company Limited (NNPC) Joint Ventures (JVs), Production Sharing Contracts (PSCs), and the long-running Project Gazelle initiative.
The breakdown showed that of the N7.55 trillion total performance, N758.99 billion came from NNPC Ltd’s JV and PSC royalty receivables for the period between January and August 2025, while N730.25 billion originated from Project Gazelle receipts covering November 2024.
The commission also highlighted that cumulative NNPC Ltd JV royalty receivables spanning October 2022 to August 2025 have reached N6.322 trillion, reflecting both the depth of unremitted obligations and the scale of upstream operations under government oversight.
In its remarks to FAAC, NUPRC noted that the September performance was largely tied to the volatility in international crude prices and production curtailments arising from field maintenance and disruptions in some producing areas.
On recoveries, the report confirmed that the commission received $3.39 million in September 2025 from previously outstanding obligations by companies operating under PSCs, Direct Sale Direct Purchase (DSDP) arrangements, and Marine Crude Allocation (MCA) liftings. The recovery formed part of a larger outstanding balance of $1.48 billion, of which about $1.476 billion remains uncollected.
NUPRC said it was still awaiting the conclusion of reconciliation work by the Alignment Committee set up to resolve payment discrepancies between NNPC and the Federation, following meetings that took place in July 2025.
“The commission collected a total sum of N741,986,951,078.10 in September 2025, given the percentage performance of 61.59 per cent. In comparison with the approved monthly budget of N1,204,801,984,708.98, a negative variance of N462,815,033,630.88 equivalent to 38.41 per cent was recorded. This performance was due to fluctuation in the crude oil price and shortfall in crude oil production.
“Total collection decreased by N3,216,634,047.54 equivalent to 0.43 per cent when compared with N745,203,585,125.64 collected in August 2025. The amount transferred to the Federation Account in September 2025 was N741, 986,951,078.10 while the total amount transferred to the Federation Account by CBN from January to September 2025 is N6,215,462,360,057.8.
“The commission’s performance from January to September 2025 is N7,554,418,148,540.38 which is inclusive of NNPC Ltd JV & PSC royalty receivables of N758,988,546,848.68 for the period of January to August 2025 and Project Gazelle receipt of N730,246,085,147.28 for November 2024 (received in January 2025), January, March to June 2025,” the report added.
FAAC is a key intergovernmental body in Nigeria responsible for distributing revenue accrued into the Federation Account among the three tiers of government, including federal, state, and local governments.
It meets monthly, usually at the Federal Ministry of Finance, to consider the total revenue collected from oil and non-oil sources and then allocate it based on constitutionally approved sharing formulas.
Membership includes representatives from: The federal government, through the Federal Ministry of Finance, Office of the Accountant-General of the Federation, and Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
The 36 state governments, usually represented by their Commissioners of Finance as well as the 774 local governments, represented through their state-level Local Government Chairmen or representatives are also on the FAAC committee.
Besides, major revenue-generating agencies, such as the NNPC, Federal Inland Revenue Service (FIRS), and Nigerian Customs Service (NCS), which present revenue performance reports are represented.
FAAC’s main goal is to ensure transparency, accountability, and equity in how Nigeria’s national revenue is shared and used to fund development across all levels of government.
Besides, after two months of delay, the Nigerian National Petroleum Company Limited (NNPC) has finally submitted a report to the FAAC ad-committee on discrepancies in remittances valued at over $42.3 billion, which is currently being studied by members of the body.
On its update on the matter during the October FAAC meeting in Abuja, members received feedback that the response from the national oil company which was received on October 10, 2025 was still being vetted.
“Recall that NNPC requested for a minimum of two months grace to study the submission of Periscope Consulting regarding under-remittance of $42,373,896,555.00 and revert back. Also recall that Periscope Consulting was the Consultant engaged by the Governors Forum to examine NNPC under remittance to the Federation Account for the period 2011 to 2017.
“During the sub-committee’s meeting, NNPC reported that they had submitted their response on the 10th of October, 2025 as requested. The Ad-hoc Committee set up to examine the issue was mandated to study NNPC submission and report back. This assignment is still work in progress,” the FAAC document stated.
On the probe into the utilisation of the NNPC’s 30 per cent deductions for Frontier Exploration Fund (FEF), the FAAC committee stated that while the report had been submitted, it was being looked into.
“Also recall that the Sub-Committee reported that NNPC presented the level of exploration activities so far carried out in all the Frontier Basins from 1999 to date and what they intend to accomplish in 2025. Arising from the presentation, NNPC was requested to provide the financial details regarding the projects for both Pre and Post Petroleum Industry Act (PIA).
“Accordingly, NNPC submitted a document in respect of the request and the Ad-hoc Committee set up to examine the utilisation of the Frontier Exploration Fund is currently studying the document and will report back. This assignment is work in progress,” it stated.
The 30 per cent exploration fund refers to the portion of profits from the NNPC earmarked for frontier exploration, that is, searching for new oil and gas reserves in untapped or underexplored regions of the country.
This allocation is backed by Section 9(4) of the PIA 2021, which mandates that 30 per cent of NNPC’s profit oil and profit gas from its production sharing, profit-sharing, and risk service contracts be set aside for oil exploration.
While supporters argue that the fund helps Nigeria expand its reserves and secure future energy supply, critics, however, contend that dedicating such a large share of profits to exploration, especially in high-risk, unproven areas may divert resources from social investments.
*Transfers represent over 11.4% of Nigeria’s N55 trillion 2025 budget *NNPC submits report on alleged $42.3bn discrepancies *Under-remittance document covers 2011 to 2017*FAAC ad-committee begins review of utilisation of 30%
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