The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has endorsed the federal government’s decision to transfer oil royalty collection responsibilities to the Nigeria Revenue Service (NRS), describing the move as a major step toward improving transparency and efficiency in the petroleum sector.

NUPRC Chief Executive, Oritsemeyiwa Eyesan, said the commission will continue to oversee technical functions such as measuring production volumes, verifying output, and calculating royalty obligations, while the NRS handles payment collection and enforcement.

She explained that the new arrangement creates clearer institutional roles, reduces duplication, and strengthens accountability in line with the Petroleum Industry Act.

On the 2025 oil block licensing round, Eyesan defended the decision to reduce signature bonuses to between $3 million and $7 million, saying the lower rates are intentional and aimed at attracting technically capable investors rather than speculative bidders.

According to her, the commission’s priority is to encourage credible companies with strong financial backing and realistic development plans that can convert oil blocks into active production assets.

She added that the licensing process has been redesigned to be more transparent, digitally driven, and based on clearly defined technical and financial criteria.

NUPRC also said its long-term target is to raise Nigeria’s crude oil production to 2 million barrels per day in the short term and 3 million barrels per day by 2030, while increasing gas output to 12 billion cubic feet per day.