Nigeria’s gross profit from crude oil and gas sales plunged by N824.66bn in 2024 despite a rebound in oil production, figures from the latest Budget Implementation Report for the fourth quarter of 2024 released by the Budget Office of the Federation have shown.
Data from the report revealed that gross profit from crude and gas sales fell to N1.08tn during the year, from N1.90tn in 2023, representing a 43.32 per cent decline.
The 2024 performance was also 26.3 per cent below the government’s budgeted target of N1.46tn, underscoring the persistence of weak fiscal inflows from the petroleum sector despite policy reforms aimed at boosting revenue.
The data indicated that the total oil and gas revenue before deductions stood at N15.07tn in 2024, against a budget of N19.99tn. This means that actual inflows fell short of the budget by N4.93tn or 24.65 per cent.
Compared with the previous year’s total of N8.36tn, however, oil and gas inflows almost doubled, showing an 80.33 per cent improvement. The PUNCH observed that the year-on-year increase was largely driven by stronger receipts from royalties, penalties, and exchange rate gains following the unification of the naira, rather than from higher crude export volumes.
