Nigeria’s earnings from crude oil and gas dropped sharply by 43% in 2024, settling at ₦1.08 trillion compared to ₦1.90 trillion in 2023, according to data from the Budget Office of the Federation’s latest Budget Implementation Report for Q4 2024.
Despite an uptick in oil production, total oil and gas revenue accounted for only 8% of overall income. The report revealed that total oil and gas proceeds before deductions reached ₦15.07 trillion, falling short of the ₦19.99 trillion budget projection by 24.65%.
The decline in crude-based income was offset by higher tax and royalty inflows. Petroleum Profit Tax (PPT) and Company Income Tax (CIT) generated ₦6 trillion, while royalties soared to ₦6.99 trillion — almost triple the previous year’s figures. This boost came largely from improved compliance and reforms introduced under the Petroleum Industry Act (PIA).
Gas-flaring penalties rose significantly by 178% to ₦391.26 billion, while royalty recovery and marginal field settlements more than doubled. Additionally, pipeline-fee revenue increased to ₦35.2 billion.
A key driver of overall revenue growth was exchange-rate gains, which skyrocketed from ₦791.88 billion in 2023 to ₦4.24 trillion in 2024 following the naira’s liberalisation. After all deductions, Nigeria’s net oil revenue stood at ₦12.95 trillion — below the ₦16.98 trillion target but far above 2023’s ₦4.82 trillion.
Crude oil production climbed by 12.6% to 442.21 million barrels, averaging 1.43 million barrels per day (bpd). December saw the highest monthly output at 1.49 million bpd, the highest since the start of the year. Total liquid output, including condensates, reached 492.34 million barrels, up from 451.09 million barrels in 2023.
However, output remained 20% below government projections due to crude theft, aging infrastructure, and low investment. Still, analysts noted that total oil and gas inflows nearly doubled year-on-year, driven primarily by stronger royalties, exchange-rate gains, and fiscal adjustments.
