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NUPRC Earns N28bn From Oil Licensing

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Nembe Oil Spill: NUPRC Describes NOSDRA’s Allegations as Unfounded

 

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has generated a total sum of N28.11bn in miscellaneous oil revenue tied to licensing fees and renewals within the first five months of 2025.

The fund collected by the commission between January and May 2025 was remitted fully to government coffers. This comes amidst the scramble by over 40 Petroleum Prospecting Licence holders to renew their exploration permits.

An analysis of data from the monthly revenue submission by the regulatory commission to the Federal Accounts Allocation Committee between January and June, showed that the commission recorded a cumulative N28.11bn in “Miscellaneous Oil Revenue” between January and May.

The commission described this category of income as revenue generated from granting approvals for various types of licences and permits. Still, it did not disclose the specific amounts earned from each source.

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A breakdown of the figures reveals that the highest earnings came in April, when the regulator collected N10.04bn. This was followed by N9.19bn in January, N3.64bn in February, N2.18bn in March, and N3.04bn in May.

The spike in non-royalty income comes amid new licensing and renewal policies rolled out by the NUPRC, including a requirement for oil producers to pay a $5,000 processing fee and submit 13 key documents for licence extension.

In the letter titled, ’Notification of PPL Tenure Expiration And Conditions For Extension’, the Chief Executive of the NUPRC, Gbenga Komolafe, said, “Further to the award of a Petroleum Prospecting License to your company during the 2020 Marginal Field Bid Round, a review of our records indicate that the PPL will expire on 27th June 2025 which is in line with the terms of award of the licence.”

By the provisions of Section 77 of the Petroleum Industry Act 2021 and 2022 Regulation on Extension of Licence, Komolafe said the letter served as a formal reminder that the PPL holders were required to either apply for an optional additional three years exploration period based on fulfilment of Minimum Work Programme/Minimum Financial Commitment attached to the licence at the time of the award and other obligations.

The law provides for an optional extension of three or five years; however, the extension would depend on the company’s performance. The commission is expected to rake in more revenue if all licensee make an application to renew their contract.

Nonetheless, the Federal Government appears pleased with the commission’s performance. Between January and May 2025, total revenue from the upstream sector, covering royalties, gas flaring penalties, concession rentals, and miscellaneous oil income, stood at over N3tn.

The commission has said it is targeting N15tn revenue this year. A breakdown of the FAAC document further revealed that revenue was generated from key streams, including oil royalties, gas flaring penalties, concession rentals, and miscellaneous oil income.

Oil royalties alone contributed a staggering N2.56tn to the Federation Account within the five-month period. Gas flaring penalties added N201bn, while concession rentals and miscellaneous oil revenue contributed N29.1bn and N28.1bn respectively.

Despite Nigeria’s 2030 net-zero pledge and previous deadlines to end routine flaring, the figures indicate the persistent environmental cost of flaring by oil producers.

The monthly breakdown shows N36.6bn in January, N36.5bn in February, N55.1bn in March, N30.4bn in April, and N42.9bn in May, making gas flaring one of the top five income streams for the regulator.

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Energy

Nigeria-US Mineral Pact Better Structured Than Oil JVs With IOCs – Obiaraeri

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Investment banker, development economist and former Imo State deputy governorship candidate, Dr. Nnaemeka Onyeka Obiaraeri, has described the 2026 Nigeria-US Solid Mineral Framework Agreement as structurally superior to Nigeria’s post-independence oil and gas joint-venture arrangements with international oil companies (IOCs).

Obiaraeri made the assertion in a post on X on Friday while comparing the newly signed minerals framework with Nigeria’s longstanding arrangements in the oil and gas sector.

According to him, the minerals agreement is different because of its emphasis on local value addition and processing.

SEE ALSO: Dangote Blames Marketers, IOCs for Lamu Refinery Protests

“The 2026 US-Nigeria Solid Mineral Framework Agreement is structurally superior to Nigeria’s post-independence Oil and Gas arrangements with International Oil Companies (IOCs),” Obiaraeri stated.

He argued that while oil joint ventures have primarily involved the extraction and export of crude oil, with limited domestic refining capacity historically, the new mining framework seeks to ensure that Nigeria does not remain merely a source of raw materials.

“The JV contract with the IOCs primarily involves the extraction and export of raw crude oil with minimal local refining capacity, whereas the new mining pact explicitly attempts to prevent Nigeria from remaining a mere source of raw materials,” he said.

Obiaraeri also said the framework comes with protection for the lives and participation rights of host communities.

He linked the issue to insecurity and illegal mining, alleging that indigenous communities have suffered deaths and hardship as a result of activities involving bandits and illegal mining networks.

“The Solid Mineral MOU also comes with protection of lives and participation rights of the host communities,” he said.

Recall that Nigeria and the United States signed a mineral investment framework in New York on September 24, 2026, aimed at attracting American investment into Nigeria’s estimated $700 billion mineral resources.

The agreement was signed by Minister of Solid Minerals Development, Dele Alake, and US Deputy Secretary of State Christopher Landau at Nigeria’s Mission House in New York.

The framework provides for cooperation in areas including geological data and exploration, mineral development and processing, infrastructure and technical capacity.

The Federal Government said the agreement is intended to promote a value-addition-driven mineral value chain and create greater opportunities for Nigerian businesses.

Nigeria’s oil and gas sector, meanwhile, has historically operated under several contractual arrangements involving the government and foreign oil companies, including joint ventures and production-sharing contracts.

Under the joint-venture model, NNPC Limited and IOC partners participate jointly in the development of petroleum assets according to their respective interests and the terms of the applicable agreements.

NNPC Limited, for instance, operates a joint venture with Chevron Nigeria Limited, with Chevron holding a 40 per cent interest and NNPC Limited holding the remaining 60 per cent in the relevant assets.

The partnership covers exploration and development activities in the Niger Delta.

Nigeria also uses production-sharing contracts for some petroleum developments, particularly in deepwater projects.

In August 2026, President Bola Tinubu approved a new deep-offshore investment framework intended to unlock up to $50 billion in investment, with NNPC Limited acting as the government’s nominated counterparty under the applicable production-sharing contracts.

Against this background, Obiaraeri said the new minerals framework provides an opportunity for Nigeria to adopt a different approach to its natural resources.

He argued that, rather than simply extracting and exporting resources, Nigeria should ensure that more processing, industrial activity and economic value remain within the country.

“I remain Nnaemeka Onyeka Obiaraeri,” he said, adding that he speaks “truth to power” and seeks to proffer solutions to national and subnational challenges.

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Energy

NMDPRA Sets Digital Gas Distribution Licence Auction Date

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Subsidy Removal: NMDPRA Assures Smooth Fuel Supply

With the completion of a nationwide gas-grid mapping exercise expected in October, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed that the digital licensing round for gas distribution areas will happen before the end of 2026.

The Authority Chief Executive, Engr. Rabiu Umar, made the disclosure on Wednesday at the Gas Investment Forum 2026, themed “Positioning Nigeria as Africa’s Global Gas Powerhouse.”

Umar said applicants would bid for gas distribution licences in designated areas across the country under a process similar to the award of Oil Mining Licences (OMLs) in the upstream sector.

“Under the licensing round, applicants will bid for gas distribution licences in the gridded areas available across the country, in the same way licensees apply for Oil Mining Licences (OMLs) in the upstream sector,” he said.

READ ALSO: MT Asharami Ghana Delivers 5,000MT LPG Cargo to Ghana

He said the initiative was part of efforts to move Nigeria from a fragmented gas-access system to an open-access regime that would allow more participants to use existing infrastructure.

“Without infrastructure, reserves are potential. They will continue to have potential,” Umar said.

“With infrastructure, gas becomes productivity and national resilience, especially in the light of the global headwinds that we see.”

According to him, the country needs infrastructure capable of moving gas from wellheads to processing plants, power stations, industrial clusters, transport corridors, homes and export terminals.

Umar said the Federal Government’s Decade of Gas Initiative was serving as an “engine of execution”, while NMDPRA was accelerating licences and approvals for gas processing plants, pipelines, storage facilities, compressed natural gas (CNG) and liquefied natural gas (LNG) projects.

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Energy

MT Asharami Ghana Delivers 5,000MT LPG Cargo to Ghana

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As part of efforts to position Ghana as a strategic hub for regional energy trade, MT Asharami Ghana, a 40,000-cubic-metre Liquefied Petroleum Gas (LPG) carrier has delivered 5,000 metric tonnes of LPG in its maiden voyage to Ghana, thus boosting efforts to strengthen energy security, and LPG supply reliability.

Purpose-built to serve Ghana and neighbouring markets, MT Asharami Ghana forms part of Sahara Group’s integrated LPG infrastructure strategy across Africa.

Welcoming the vessel, Hon. Dr. John Abdulai Jinapor, Minister for Energy and Green Transition, described the arrival of MT Asharami Ghana as a major boost to Ghana’s clean energy ambitions.

“The arrival of MT Asharami Ghana represents a significant step forward in our quest to expand access to cleaner energy solutions for Ghanaians. As we work towards increasing LPG adoption across the country, investments like this are essential to strengthening supply reliability and achieving our clean cooking objectives.”

READ ALSO: Nigeria @ 66: Chevron Reaffirms Commitment to Partnership with Nigeria

The Minister said Ghana’s ambition of increasing LPG utilisation and improving energy security can only be achieved through strong partnerships between government and responsible private-sector investors.

“We commend Sahara Group for standing shoulder-to-shoulder with Ghana over the years in supporting our aspirations for energy security, economic growth and sustainable development. The success of our energy transition journey depends on credible and committed partners.”

According to Wale Ajibade, Executive Director, Sahara Group, the vessel represents far more than an investment in maritime infrastructure.

Ajibade noted that Ghana’s target of increasing LPG adoption in 50 per cent of households by 2030, up from about 30 per cent today, makes investments in supply infrastructure increasingly important.

“At Sahara, we see MT Asharami Ghana as a symbol of confidence in Ghana’s future and the country’s growing role in regional energy trade. It reflects our unwavering belief in Ghana’s immense potential and our determination to work alongside stakeholders to deliver sustainable energy solutions that improve lives, create opportunities and drive inclusive growth.”

He added that the vessel is part of a broader, integrated infrastructure strategy combining shipping, storage, and downstream distribution to strengthen Ghana’s LPG value chain.

Yaa Serwaa Alifo, Managing Director, Asharami Ghana, described the vessel’s arrival as the culmination of a vision and a bold statement of the company’s commitment to Ghana’s energy future.

“What we are celebrating here is the culmination of a vision and a bold statement of our commitment to Ghana’s energy future. Asharami Ghana will help ensure that homes, businesses and families across Ghana have reliable access to cleaner cooking fuel,” she said.

Alifo acknowledged the support of the Government of Ghana, the Ministry of Energy and Green Transition, the National Petroleum Authority, Sahara Group’s leadership, and all stakeholders whose collaboration helped bring the project to fruition.

As demand for LPG continues to grow across the sub-region, investments in marine infrastructure such as MT Asharami Ghana will become increasingly important in ensuring security of supply, operational efficiency, and sustainable economic growth.

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