NUPRC Supports Oil Royalty Shift to Nigeria Revenue Service

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), led by Chief Executive Oritsemeiyiwa Eyesan, has endorsed the federal government's decision to transfer the collection of oil royalties to the Nigeria Revenue Service (NRS). This move is seen as a step towards greater fiscal clarity and efficiency in the upstream regulatory framework.

The NUPRC has also justified the reduced signature bonuses for the upcoming 2025 licensing round, which will range from $3 million to $7 million, emphasizing the need for technical competence and credible work programs over high upfront payments. The commission aims to enhance transparency and eliminate overlaps in revenue collection, ensuring that the NRS handles the collection and enforcement of royalties while the NUPRC retains its technical oversight role.

President Bola Tinubu's executive order mandates that revenues from the petroleum sector, including royalties and taxes, be paid directly into the federal account, marking a significant shift in fiscal administration.