Nigeria’s gross profit from crude and gas sales
dropped by 43% in 2024, contributing just 8% of total oil and gas
revenue, according to the Budget Office of the Federation’s Q4 2024
report.
- Oil
revenue fell from ?1.90 trillion in 2023 to ?1.08
trillion, a ?824.66 billion decline.
- Revenue
from Petroleum Profit Tax and Company Income Tax reached ?6
trillion, while royalties brought in ?6.99 trillion,
nearly triple the previous year due to improved compliance and the Petroleum
Industry Act.
- Gas-flaring
penalties surged 178% to ?391.26 billion,
and incidental income from royalty recovery and marginal-field
settlements more than doubled.
- Exchange
rate gains contributed significantly, rising to
?4.24 trillion from ?791.88 billion in 2023 following currency
liberalisation.
Production and Output:
- Crude
oil production rose 12.6% to 442.21 million barrels, averaging 1.43
million barrels per day.
- Total
liquids (crude + condensates) reached 492.34 million barrels, up
from 451.09 million barrels in 2023.
- Despite
these gains, output was only 80% of government projections, due to
infrastructure constraints, crude theft, and underinvestment.
Net Revenue:
- After
deductions, net oil revenue stood at ?12.95 trillion, below the ?16.98
trillion budget target but substantially higher than ?4.82 trillion
in 2023 — a 168.83% year-on-year increase.
- Analysts
note that the revenue growth is largely exchange-rate driven,
rather than from higher crude export volumes.
Quarterly Trends:
- Oil
receipts rose from ?3.35 trillion in Q1 to ?3.91 trillion in Q4,
remaining consistently below the projected average of ?4.99 trillion.
Takeaway:
While overall oil revenue appears improved due to currency effects, actual
crude profits fell sharply, highlighting structural issues in the sector
and the government’s increasing reliance on taxes, royalties, and incidental
revenues.
Comments:
Leave a Reply