The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Revenue Service (NRS) have strengthened their partnership aimed at boosting revenue collection for the Federation.
The decision was taken on Monday, when the new NUPRC Chief Executive, Oritsemeyiwa Eyesan, visited the NRS Chairman, Zacc Adedeji, at the corporate headquarters of the tax agency in Abuja.
According to a statement by the NUPRC spokesperson, Eniola Akinkuotu, Mrs Eyesan’s visit was also part of her wider engagement with relevant stakeholders following her assumption of office as Chief Executive last month.
This collaboration between NUPRC and NRS is considered a strategic response to the new tax laws that officially took effect on January 1, 2026. The move is expected to streamline the administration of oil and gas revenues, ensuring that the government meets its ambitious fiscal targets for the year.
“Based on the new tax laws that came into effect on January 1, 2026, the NRS and the NUPRC are expected to collaborate more closely in the collection of oil and gas revenues,” Akinkuotu stated.
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He further stated that both parties agreed during the meeting to synchronise their operations to eliminate bottlenecks in the collection of taxes and royalties from the upstream sector.
The newly enacted Nigeria Tax Act and the Nigeria Revenue Service (Establishment) Act, which took effect on January 1, aim to modernise and simplify the tax landscape.
Mrs Eyesan emphasised the entrenchment of digitalisation, transparency, and efficiency to ensure the NUPRC remains a “gold-standard” regulator in Africa.
Provisions of the new Tax Laws on collection of oil and gas royalties
The Nigeria Tax Act 2025 introduced a fundamental shift in how oil and gas royalties are managed. The most significant change is the transfer of administrative and collection powers from the NUPRC to the Nigeria Revenue Service.
The NTA 2025 provides that the NRS is now the sole authority for the administration and collection of royalties.
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Previously, under the Petroleum Industry Act (PIA), the NUPRC handled both the regulation of technical operations and the collection of royalties. However, under the new regime, NUPRC remains the technical regulator (determining production volumes and prices), but the actual invoicing and collection of payments are managed by the NRS.
Collaboration Framework
The law (section 117) mandates a “joint” operational approach:
Joint Quarterly Reviews: The NRS and NUPRC must conduct joint quarterly audits of royalty records, concession rentals, and other payments.
Information Exchange: The NUPRC provides the technical data (measurement points, fiscal oil/gas prices, and chargeable volumes), while the NRS uses this data to enforce tax compliance.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
