Nigeria’s upstream petroleum sector saw a significant jump in government revenue in 2024, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reporting N12.25 trillion in collections for the year. The commission’s latest Annual Report reveals robust performance across key revenue streams, reflecting both higher oil production levels and improved enforcement of existing regulations.
The 2024 figure substantially surpassed the government’s target of N6.93 trillion, underlining the sector’s critical role in public finances. Compared to the N4.34 trillion collected in 2023, the new total represents a rise of about 182 percent—significantly higher than 2023’s results and well above earlier projections.
For historical context, the commission generated N3.7 trillion in 2022, highlighting the steep increase over the past two years.
Detailed 2024 Revenue Performance
According to the commission’s report, oil and gas royalties formed the bulk of collections, contributing N11.08 trillion. Other revenue sources included:
- Gas flared penalties: N391.26 billion
- Concession rentals: N23.71 billion
- Miscellaneous revenue: N35.19 billion
- Signature bonuses: N369.57 billion
- Lease renewals: N230.73 billion
- Goods and valuable consideration: N117.02 billion
These results exceeded budget estimates in almost every category. For example, royalties were originally forecast at N6.42 trillion, while signature bonuses had been projected at N251.45 billion.
Oil Production Data for 2024
In addition to revenue figures, the report provided a snapshot of Nigeria’s upstream production performance. Total crude and condensate production for the year reached 578.5 million barrels. This comprised 482.8 million barrels of oil and 95.7 million barrels of condensate.
Daily average production was stated as approximately 1.58 million barrels per day (bpd), broken down into 1.32 million bpd of crude oil and 261,430 bpd of condensate. The commission stressed that these figures represent “unreconciled volumes” used for internal measurement and reservoir management, and cautioned against interpreting them as export volumes.
NUPRC also reported that the industry operated at about 67 percent of its Technical Allowable Rate (TAR) in 2024. TAR represents the maximum optimised production capacity set by the commission following statutory bi-annual efficiency tests for all producing wells.
Production by Contract Type
Production in 2024 was dominated by joint ventures, which accounted for 48 percent of output. Production sharing contracts contributed 35 percent, while sole risk operators delivered 13 percent, and marginal fields supplied the remaining 4 percent.
Sector Outlook
The surge in government revenue highlights the upstream sector’s continued importance for Nigeria’s economy, especially in an era of heightened pressure to diversify revenue sources. While the gains reflect strong commodity prices and better enforcement of royalty and penalty regimes, the report also hints at persistent challenges, including underutilisation of capacity and the need for further investment to unlock the country’s full production potential.
The commission’s leadership has positioned these results as evidence of improved regulatory oversight and industry compliance. However, sustaining this momentum may require resolving issues around infrastructure, security, and investment confidence—critical factors as Nigeria aims to stabilise its public finances and expand opportunities in its energy sector.