The Federal Government’s earnings from oil royalties and others ballooned from about N4tn to N12tn following the devaluation of the naira, The PUNCH reports.
This represents a 200 per cent jump in earnings to the government through its Nigerian Upstream Petroleum Regulatory Commission.
A latest report from the NUPRC showed that the revenue generated by the commission rose from N4tn in 2023 to N12tn in 2024. The surge came after President Bola Tinubu’s June 2023 decision to float the naira, causing it to weaken significantly.
The currency slid from N473/$ to nearly N800/$ mid-year and eventually closed 2023 at an average of N1,000 to the dollar. In 2024, the naira depreciated further, averaging around N1,600 to the dollar.
However, industry analysts stated that though the naira devaluation prompted the rise, the government raked in considerable earnings from oil and gas royalties during the review period.
They urged the government to put the funds to good use for economic development. With most of NUPRC’s charges denominated in US dollars, the naira depreciation appeared to have significantly boosted the agency’s naira revenue when dollar inflows were converted.
