Finance Minister Henry Musasizi has reaffirmed the government’s commitment to prudent and transparent management of petroleum revenues as Uganda prepares to achieve first oil in the 2026/27 financial year.
Minister Musasizi made the remarks on Friday while presenting the Petroleum Fund annual report for the financial year ended June 30, 2025, and the semi-annual report for the period ended December 31, 2025, to the Parliamentary Committee on Finance, Planning and Economic Development.
The reports, prepared in accordance with the Public Finance Management Act, provide an update on the management, performance and utilisation of revenues generated from petroleum and petroleum-related activities.
As of June 30, 2025, the Petroleum Fund stood at Shs131.27 billion, down from Shs145.98 billion the previous year. The reduction followed the appropriation and transfer of Shs281.87 billion to the Consolidated Fund and Uganda National Oil Company (UNOC).
During the 2024/25 financial year, the Fund received Shs268.2 billion, up from Shs184.01 billion in the previous financial year. The revenue comprised Shs261.5 billion in tax revenue and Shs6.72 billion in non-tax revenue.
Of the funds appropriated during the financial year, Shs166.5 billion was invested in UNOC, while Shs115.37 billion was used to finance part of the construction of Hoima City Stadium ahead of the 2027 Africa Cup of Nations (Afcon).
By December 31, 2025, the Petroleum Fund had risen to Shs212.6 billion, compared with Shs131.27 billion during the corresponding period of the previous year.
However, the Fund received Shs81 billion during the six months ended December 31, 2025, compared with Shs105 billion in the corresponding period of the previous year.
The 23 per cent decline was attributed to the oil and gas project cycle, with major construction and drilling contractors having completed key activities in preparation for first oil, thereby reducing the withholding tax base.
The Charter for Fiscal Responsibility provides that a maximum of petroleum revenue equivalent to 0.8 per cent of the preceding year’s non-oil gross domestic product (GDP) may be appropriated through the annual budget to finance infrastructure and development projects.
The remainder of the petroleum revenue is to be invested in the Petroleum Revenue Investment Reserve.
Minister Musasizi said Uganda remains on course to achieve first oil in the 2026/27 financial year, adding that government had put in place institutional and multi-sectoral arrangements to ensure effective management, investment and utilisation of petroleum revenues.
He also said the arrangements would support transparency and accountability in reporting on the country’s petroleum revenues as Uganda enters the oil production phase.
