Nigeria’s federal government recorded a significant increase in revenue during the third quarter of 2024, as income from crude oil sales surged by 54%, pushing total earnings to ₦2 trillion. The latest report from the Nigerian Bureau of Statistics (NBS) reveals that higher global oil prices and increased production levels contributed to the substantial boost in government revenue.
According to the report, the 53.59% rise in revenue was driven by improved crude oil exports and higher remittances from the Nigerian National Petroleum Company (NNPC) Limited. The development comes amid ongoing efforts by the government to maximize the country’s oil output despite production challenges, including pipeline vandalism and oil theft in the Niger Delta region.
Despite the positive revenue growth, the federal government’s earnings for Q3 2024 still fell short of the projected target by 62.19%. Analysts suggest that the gap between expected and actual revenue is largely due to inconsistencies in production levels and fluctuations in the global oil market.
The increase in revenue is expected to provide a financial cushion for the government as it navigates pressing economic challenges, including rising inflation, exchange rate volatility, and subsidy-related expenditures. However, economic experts caution that Nigeria’s reliance on oil revenues remains a risk, emphasizing the need for diversification into other sectors such as agriculture, technology, and manufacturing.
With the government currently implementing reforms in the petroleum sector, stakeholders are hopeful that sustained investment and policy adjustments will further stabilize oil revenue and boost economic growth in the coming quarters.