The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Revenue Service (NRS) have agreed to deepen institutional collaboration as Nigeria seeks to strengthen oil and gas revenue collection under its reformed tax and fiscal regime.
The renewed push for coordination followed a meeting on Monday, January 12, 2026, when the Commission Chief Executive of NUPRC, Oritsemeyiwa Eyesan, paid a working visit to the Chairman of the NRS, Zacc Adedeji, at the tax authority’s headquarters in Abuja.
The engagement forms part of Mrs. Eyesan’s broader stakeholder consultations since assuming office last month and comes against the backdrop of sweeping tax reforms that took effect on January 1, 2026.
Why NUPRC–NRS Collaboration Matters Under the New Tax Regime
Nigeria’s revised tax architecture places oil and gas revenues at the intersection of regulatory oversight and tax administration, making coordination between NUPRC and NRS increasingly unavoidable.
Under existing petroleum and tax legislation, NUPRC is responsible for upstream licensing, production measurement, cost verification, and operational compliance, while NRS administers and collects federally collectible taxes, including hydrocarbon tax, companies income tax, withholding taxes, and applicable levies arising from upstream activities.
In practical terms, this creates several points of functional interaction:
Production and Measurement Data: NUPRC-certified production volumes form the basis for hydrocarbon tax and royalty assessments administered by NRS.
Cost Recovery and Allowable Deductions: NUPRC’s oversight of field development plans and cost structures directly affects taxable profits reviewed by NRS.
Licensing and Fiscal Stability Provisions: Changes to licences, marginal field arrangements, or divestments approved by NUPRC trigger tax consequences that fall within NRS’s remit.
Compliance and Enforcement: Regulatory sanctions or licence revocations by NUPRC often have downstream tax and penalty implications managed by NRS.
With new tax laws tightening enforcement and expanding data-sharing expectations across government agencies, siloed operations are no longer viable.
Likely Mechanisms for Collaboration
Officials familiar with the discussions say the partnership is expected to move beyond ad-hoc engagement toward more structured cooperation.
Likely mechanisms include:
- Shared Data Platforms enabling real-time reconciliation of production, export, and revenue figures
- Joint Audit Frameworks for upstream operators, reducing disputes over volumes, costs, and tax liabilities
- Aligned Compliance Timelines to ensure regulatory filings and tax submissions are mutually consistent
- Policy Coordination on fiscal incentives, waivers, and reliefs to minimise revenue leakage
Such mechanisms would allow both agencies to rely on a single source of verified upstream data, reducing room for under-declaration and post-fact disputes.
Expected Outcomes: Revenue Assurance and Fewer Disputes
For government, the immediate objective is improved revenue assurance at a time when fiscal pressures remain elevated and oil production recovery is a national priority.
Closer NUPRC–NRS coordination is expected to:
- Increase accuracy and predictability of oil and gas revenue flows
- Reduce protracted tax disputes with upstream operators
- Strengthen investor confidence through clearer, more consistent enforcement
- Support government efforts to meet ambitious revenue targets without raising headline tax rates
At the meeting, both agencies reaffirmed their commitment to work in the national interest to ensure Nigeria realises the full fiscal value of its upstream petroleum resources.
As Nigeria’s tax and petroleum governance frameworks continue to converge, the effectiveness of this partnership will be closely watched by operators, investors, and fiscal authorities alike.
