Nigeria’s federal government recorded a significant drop in oil revenue in September 2025, with collections from the oil and gas sector falling by N345.19 billion. Data presented by the Federal Inland Revenue Service (FIRS) to the Federal Account Allocation Committee (FAAC) revealed that only N302.5 billion was collected, a sharp decline from N644.5 billion in August. This represents a 53% month-on-month decrease and a nearly 50% shortfall from the targeted N600.16 billion for the month.
The FIRS attributed the decline largely to reduced receipts from Production Sharing Contracts (PSC), which are key sources of the Petroleum Profit Tax (PPT). The agency highlighted that disruptions in oil production and fluctuating global oil prices contributed heavily to the poor performance. These challenges underscore ongoing vulnerabilities in Nigeria’s oil-dependent revenue system.
The Nigerian Upstream Regulatory Commission (NUPRC) also reported a decline in funds collected on behalf of the federal and state governments, falling by over N3.2 billion. The commission pointed to a drop in crude oil production, which fell to 1.39 million barrels per day in September—the second consecutive month of reduced output—and the lowest in seven months. This decline was exacerbated by a labor strike between the Petroleum and Natural Gas Senior Staff Association of Nigeria and the Dangote Refinery, which disrupted production and export schedules.
OPEC confirmed the lower output in its latest Monthly Oil Market Report, noting that Nigeria’s production dipped below its OPEC allocation of 1.5 million barrels per day. The strike led to temporary shutdowns at several facilities, while crude oil price fluctuations further reduced expected revenue. Despite these challenges, the NUPRC transferred N741.99 billion to the Federation Account in September, achieving 61.59% of its monthly target of N1.2 trillion, leaving a negative variance of 38.41%.
Looking at the year-to-date picture, the total amount transferred to the Federation Account by the Central Bank of Nigeria from January to September 2025 reached N6.215 trillion. The NUPRC’s cumulative performance, including royalty receivables from joint ventures and PSCs, now stands at N7.554 trillion. The commission is also awaiting a final report on the reconciliation of indebtedness between NNPC Ltd and the Federation, which could further affect future revenue projections.
source: Daily trust