• Channels more oil revenue from NNPC slush funds to federal account

Sopuruchi Onwuka

Commission Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Mrs Oritsemeyiwa Eyesan, has declared that country has rebuilt available oil production capacity to some1.84 million barrels per day after a recent downturn which led to production slump.

She also declared that the commission which hitherto hosted the Frontier Exploration Fund (FEF) for the Nigerian National Petroleum Company (NNPC) Limited has rechanneled the stash funds to the federation account in line with Presidential Executive Order No 9 of 2026.

She added that the management fees hitherto charged by the NNPC Limited for supervising players’ operations under production sharing agreements have also been reined into the federation account in direct compliance to Executive Order 9.

Mrs Eyesan who paid a courtesy visit to the Coordinating Minister of the Economy and Minister of Finance, Wale Edun, stated that the commission is still pushing the petroleum industry players to drive production growth through to over 2.0 million barrels per day (mbd).

“We are doing 1.84 million barrels per day. That is a remarkable feat, but I am sure we will do more,” Mrs Eyesan told the minister, saying that incidents and facility maintenance programs that led to production dip have been resolved.

To drive sustainable production growth, Mrs Eyesan said the NUPRC has reached technical and financial stage with the 2025 licensing round, adding that the “drill or drop” in the Petroleum Industry Act (PIA) hosts great incentive for rapid production growth.

She revealed that some of the acreages that were put on offer could see production as soon as a year, adding that indigenous companies were showing an impressive capacity.

She expressed stressed that the PIA empowers the commission to revoke leases of dormant acreages.

On Executive Order 9 which borders on revenue accountability in the industry, Mrs Eyesan declared that NUPRC has started recovery of the funds and ensuring direct revenue flow into the federation account.

According to her, the Executive Order 9 of 2026 directs the immediate suspension of the 30% Frontier Exploration Fund (FEF) deduction from oil and gas profits, alongside other management fees and the direct remittance of same to the Federation Account.

Oracle Intelligence reports that the FEF and accompanying Management Fees hitherto retained by the NNPC Limited were clearly provided by the PIA and were therefore legitimate even if flawed. The law provided that the FEF be set aside to fund hydrocarbon exploration in underexplored and low prospect terrains, while the management fees were provided to offset the cost of oversight on the operators of production sharing contracts.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who also sits in the implementation committee of Executive Order 9, commended the NUPRC on remarkable production recovery.

Mr Edun who hosted a visiting delegation from the NUPRC said production recovery announced by Mrs Eyesan falls totally in line with the mandate of President Bola Tinubu.

The finance minister described the war in the Middle East as unfortunate but said President Bola Tinubu had mandated an increased production even before the crisis began. He called on the NUPRC to push the industry harder to hit 2.0 mbd.

“I wish you continued success. What matters is not just reaching certain heights but sustaining it. We don’t want any stopping along the way. The trajectory should be maintained and of course the magic figure is 2 mbd,” Edun stated.