The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported a shortfall of ₦459.6 billion in its August 2025 revenue collections, citing underperformance in oil and gas royalty inflows despite an improvement in crude oil production.
While Nigeria’s crude oil production rose closer to the 2 million barrels per day mark, expected royalty payments from oil operators lagged, leading to revenue falling below the Federation Accounts Allocation Committee (FAAC) target for the month.
The shortfall highlights challenges in timely royalty remittances and collection procedures, despite increases in overall output driven by strategic initiatives to boost production.
NUPRC’s Executive Commissioner for Economic Regulation and Strategic Planning, Babajide Fashina, explained that production remains ongoing and revenue payments reconcile over time. Discrepancies, delayed payments, and outstanding royalty balances affect monthly collections.
The commission has launched debt recovery efforts targeting overdue payments from oil firms and joint venture partners, recovering millions to close revenue gaps.
This revenue underperformance contrasts with strong first-half figures in 2025, when NUPRC generated over ₦5.21 trillion, attributed to improved licensing, penalty payments, and gas sales.
The federal government set a ₦15 trillion annual revenue target for NUPRC in 2025, emphasizing heightened fiscal discipline, transparency, and collaboration with industry stakeholders to meet targets amid volatile global oil markets.