FG Rakes in N5.21tn from Oil, Gas as Petrol Price Hits N925 Despite Cheaper Crude

The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has announced that it generated a total of N5.21 trillion from crude oil, gas, and other related economic activities in the first half of 2025.

According to the commission’s latest financial performance report submitted to the Federation Accounts Allocation Committee (FAAC), the inflow represents 42.7% of the record N12.2 trillion revenue achieved in the entire 2024 fiscal year. However, the figure accounts for just 34.7% of the ambitious N15 trillion revenue target set by the Federal Government for the commission in the 2025 budget.

The earnings were drawn from multiple sources, including royalties, gas sales, penalties on flared gas, and proceeds from joint ventures. Notably, payments from the Nigerian National Petroleum Company Limited (NNPCL) joint venture and production-sharing contract royalties amounted to N1.04 trillion within the six-month period. The report also listed N315.93 billion from the controversial Project Gazelle receipts in January and March 2025. No inflows were recorded under the project for December 2024, February, April, May, and June 2025.

While the revenue performance reflects steady inflows from upstream activities, Nigerian consumers are grappling with a sharp hike in petrol prices. Despite a drop in global crude oil prices from nearly $69 to $66 per barrel since Sunday, filling stations across Lagos, Ogun, and several other states have increased pump prices to N900 per litre and above.

Investigations revealed that retail outlets owned by the NNPCL raised petrol prices to N900 per litre in Lagos and Ogun States. Partners of the Dangote Refinery, including Ardova Plc and Heyden Petroleum, followed suit, with some selling above the N900 mark. Along the Lagos-Ibadan Expressway on Monday, AP (Ardova) was observed selling at N925 per litre in Mowe, Ogun State, while Heyden sold at N910.

The price surge comes despite no significant change in the naira-dollar exchange rate. Last week, petrol was generally sold below N900 in many stations across Lagos, Ogun, and surrounding areas, though prices were already higher in the South-East, South-South, and parts of the North.

Industry marketers told The PUNCH that the hike may be short-lived, with possible downward adjustments within the week. However, for many Nigerians, the development adds to the economic strain at a time when the government is touting improved revenue performance from the oil and gas sector.