Nigeria’s non-oil revenue rose sharply to N4.39 trillion in the fourth quarter of 2024, outpacing government projections and helping to cushion persistent oil revenue shortfalls.
The latest Budget Implementation Report released by the Budget Office of the Federation showed that the non-oil take was N1.68 trillion, or 62.4 percent, higher than the quarterly target of N2.7 trillion.
The strong performance was largely driven by Company Income Tax (CIT) collections of N1.5 trillion, Value Added Tax (VAT) of N1.94 trillion, and Customs receipts of N837.38 billion — each outperforming their respective targets by 79.8 percent, 96.9 percent, and 16.8 percent.
Non-oil gains cushion oil slump
The impressive non-oil receipts helped offset a significant dip in oil revenue, lifting total distributable revenue for the quarter to N7.5 trillion, about 10.8 percent above the projected N6.76 trillion. This marks a positive signal for the government’s economic diversification agenda under the “Renewed Hope” framework.
In contrast, gross oil revenue stood at N3.9 trillion — down 21.8 percent or N1.09 trillion below budget expectations and 15.5 percent less than the N4.62 trillion recorded in the preceding quarter.
The decline was attributed to falling crude prices, averaging US$74.65 per barrel, lower output, crude theft, infrastructure bottlenecks, and high fiscal deductions tied to subsidies and obligations.
Still, on a year-on-year basis, Q4 oil receipts were up by over 100 percent compared to the same period in 2023, indicating some recovery despite structural challenges.
