The latest data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicates a staggering 176.7% growth in revenue for 2024, reaching N12.2 trillion compared to the previous year’s figures.
For the year under review, the commission’s total revenue was N3.7 trillion, down from N4.3 trillion in 2023, yet it experienced a remarkable recovery to N12.2 trillion in 2024.
Personnel costs accounted for 33.10% of total expenditures at N63.2 billion, while overheads were N85.8 billion, or 44.9%, and capital expenditures stood at N41.9 billion, making up 21.9%.
Furthermore, the Cost of Revenue Collection (CORC) reached N271 billion, an increase from N114.8 billion in 2023, with Internally Generated Revenue (IGR) recorded at N1.6 trillion.
The 2024 annual report highlights 732 environmental incidents, including blowouts, equipment failures, and operational errors.
During the review period, an average of 77% of the Domestic Gas Delivery Obligation (DGDO) was met, though numerous challenges such as insufficient infrastructure and security concerns persisted.
Producers have submitted formal requests for waivers regarding their domestic oil supply commitments, citing various reasons.
The ongoing domestic crude oil supply issues significantly threaten Nigeria’s energy sector stability. As one of Africa’s leading oil producers, the nation continues to face difficulties ensuring a reliable supply of crude oil to its public and modular refineries.
Core issues stem from the limited capacity for local crude production and refining, with heavy reliance on fuel imports due to the poor state of government-owned refineries in Port Harcourt, Warri, and Kaduna.
Pipeline vandalism and oil theft further disrupt crude availability, with sabotage of pipelines making transportation risky and costly, forcing producers to halt operations or reroute cargo at great expense.
The report acknowledges multiple requests from industry stakeholders asking for waivers on their monthly allocations or providing justifications for potential shortfalls.
To tackle domestic oil supply challenges, a 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 formed to create a comprehensive framework for the Domestic Crude Supply Obligations (DCSO) policy.
Following complaints regarding the involvement of refiners in curtailment meetings, the commission has decided to temporarily suspend their attendance until further notice.
Despite these hurdles, the NUPRC is dedicated to facilitating crude allocations to local refineries, ensuring transparency by publishing relevant data on its website.
