Nigeria’s oil revenue fell by 22% to ₦3.9 trillion in the fourth quarter of 2024, according to the Budget Office of the Federation. The figure was ₦1.09 trillion below the quarterly target, reflecting weaker crude sales and lower petroleum profit taxes.

Compared with ₦4.62 trillion in Q3 2024, oil earnings declined by 15.5%, though they more than doubled from ₦1.89 trillion in Q4 2023.

Key Drivers:

Royalties (Oil & Gas) rose 36% above target to ₦2.18 trillion.

Exchange gains contributed ₦1.22 trillion, despite no budget projection.

Petroleum profit and gas taxes slumped to ₦1.25 trillion, far below the ₦2.99 trillion target.

Meanwhile, non-oil revenue grew strongly to ₦4.39 trillion, exceeding expectations by over 60%, driven by higher collections from CIT, VAT, and Customs.

The Budget Office noted that the oil revenue shortfall could pressure government spending and borrowing, while the strong non-oil performance shows progress in fiscal diversification.