Uganda’s Petroleum Fund grew to Shs212.6 billion by the end of December 2025 as the government reaffirmed its commitment to prudent management of oil revenues ahead of the country’s expected First Oil production in the 2026/27 financial year.
Finance Minister Henry Musasizi presented 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 Parliament’s Committee on Finance, Planning and Economic Development on Friday.
The reports, prepared under the Public Finance Management Act, provide an account of how petroleum revenues have been collected, invested and utilized as Uganda advances towards commercial oil production.
Musasizi said the government has put in place the institutional and legal framework needed to ensure petroleum revenues are managed transparently and invested in national development.
“Uganda remains on track to achieve First Oil during FY2026/27. Government has established the institutional and multi sectoral arrangements required to ensure effective management, investment, utilisation and transparent reporting on petroleum revenues,” Musasizi said.
The minister said the Petroleum Fund stood at Shs131.27 billion on June 30, 2025, down from Shs145.98 billion a year earlier.
The decline followed the appropriation and transfer of Shs281.87 billion from the Fund to the Consolidated Fund and the Uganda National Oil Company (UNOC) to finance priority government investments.
Despite the lower closing balance, petroleum revenue collections increased significantly during the financial year.
The Fund received Shs268.2 billion during FY2024/25, compared to Shs184.01 billion in the previous year.
Of this amount, Shs261.5 billion came from petroleum related taxes while Shs6.72 billion was generated as non tax revenue.
The report shows that Shs166.5 billion was invested in UNOC to strengthen the country’s participation in the oil sector, while Shs115.37 billion was used to finance part of the construction of Hoima City Stadium, one of Uganda’s flagship projects being prepared for the 2027 Africa Cup of Nations (AFCON).
By December 31, 2025, the Petroleum Fund had recovered strongly to Shs212.6 billion, reflecting continued revenue inflows despite changes in the oil sector’s construction cycle.
During the six months ending December 2025, the Fund received Shs81 billion, compared to Shs105 billion during the same period in the previous year.
The reports attribute the 23 percent decline in collections to the transition of Uganda’s oil and gas projects from intensive construction and drilling into the final stages of preparation for First Oil.
As major contractors completed their principal activities, the withholding tax base reduced, leading to lower revenue collections during the period.
The government maintained that the slowdown was expected as the sector enters its next phase.
Uganda’s petroleum development is anchored on the Lake Albert oil projects, including the Tilenga and Kingfisher oil fields, the East African Crude Oil Pipeline (EACOP) and the Kabalega Industrial Park, which are collectively expected to unlock commercial production and transform the country’s economy.
The government has consistently maintained that revenues generated from oil will be protected under strict fiscal rules designed to prevent excessive spending.
Under Uganda’s Charter for Fiscal Responsibility, only oil revenue equivalent to a maximum of 0.8 percent of the preceding year’s non oil Gross Domestic Product can be appropriated through the annual budget to finance infrastructure and development projects.
Any revenue above that limit is transferred to the Petroleum Revenue Investment Reserve, where it is invested for future generations and long term economic stability.
Musasizi said these safeguards remain central to Uganda’s strategy of ensuring that petroleum wealth supports sustainable development while preserving fiscal discipline as the country prepares to become an oil producing nation.
