Nigeria’s oil revenue dropped by 22% to ₦3.9 trillion in the fourth quarter of 2024, reflecting a significant shortfall against budgetary expectations.
This is according to the Budget Office of the Federation (BOF) in its Q4 2024 Budget Implementation Report.
The report revealed that the country recorded ₦3.91 trillion in gross oil revenue, representing a ₦1.09 trillion (21.82%) decline compared to the prorated quarterly budget estimate.
Performance also fell short of the ₦4.62 trillion generated in the third quarter of 2024 by ₦714.61 billion (15.46%), though it marked a notable improvement of ₦2.02 trillion (107.23%) over the ₦1.89 trillion earned in the corresponding period of 2023.
According to the Budget Office, Royalties (Oil & Gas) generated ₦2.18 trillion, exceeding the quarterly estimate of ₦1.61 trillion by ₦578.73 billion (36.04%).
Concessional Rentals amounted to ₦5.59 billion, surpassing the target of ₦2.18 billion by ₦3.41 billion (156.15%).
Miscellaneous Revenue — including pipeline fees and other charges — totalled ₦8.79 billion, exceeding the projection of ₦4.02 billion by ₦4.77 billion (118.48%).
“Gas Flared Penalty and Exchange Gain, which had zero projections, yielded ₦108.54 billion and ₦1.22 trillion in the quarter under review,” the report stated.
However, Crude Oil and Gas Sales (₦335.69 billion), Petroleum Profit and Gas Taxes (₦1.25 trillion), and Incidental Oil Revenue (₦15.57 billion) all fell below their quarterly estimates of ₦366.09 billion, ₦2.99 trillion, and ₦26.25 billion by ₦30.40 billion (8.30%), ₦1.74 trillion (58.27%), and ₦10.69 billion (40.70%), respectively.
The decline in oil revenue raises fresh concerns over Nigeria’s fiscal stability, particularly as the federal government continues to rely heavily on oil proceeds to fund key budgetary commitments.
Despite the setback, the government expressed optimism that ongoing petroleum sector reforms — including the implementation of the Petroleum Industry Act (PIA), renewed security measures in the Niger Delta, and enhanced production oversight — could help stabilise revenues in subsequent quarters.
Meanwhile, non-oil revenue surged to ₦4.39 trillion in Q4 2024, representing an increase of ₦1.68 trillion (62.39%) above the quarterly estimate of ₦2.70 trillion.
The performance was driven by stronger receipts from Company Income Tax (CIT) of ₦1.5 trillion, Value Added Tax (VAT) of ₦1.94 trillion, and Customs collections of ₦837.38 billion — exceeding their targets by 79.79%, 96.94%, and 16.75%, respectively.
— Nairametrics
