The budget office of the federation says the federal government recorded N3.34 billion as net oil revenue in the fourth quarter (Q4) of 2024.
The office, in its Q4 2024 budget implementation report, said the figure is 21 percent below the quarterly budget estimate of N4.24 billion.
“The actual Net Oil Revenue that accrued into the Federation Account in the fourth quarter of 2024 was ₦3,349.25 billion, depicting a decrease of ₦896.57 billion (21.12 percent) below the estimated quarterly budget of ₦4,245.83 billion,” the report said.
“The inflow was lower than the ₦3,988.29 billion net oil revenue recorded in the third quarter of 2024 by ₦639.03 billion (16.02 percent) but higher than the ₦2,414.22 billion recorded in the fourth quarter of 2023 by ₦1,574.07 billion (65.20 percent) respectively.”
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The budget office attributed the poor revenue performance to a decline in oil production and lifting, citing low sector investment, crude oil theft, and high fiscal deduction — including for the petroleum subsidy policy of the government.
‘GROSS OIL REVENUE STOOD AT N3.9 BILLION’
The report also said gross oil revenue stood at N3.9 billion in Q4 2024, reflecting a N1.09 billion (21.82 percent) shortfall compared to the prorated quarterly budget estimate.
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The performance, according to the office, was also N714.61 billion (15.46 percent) below the N4.623 trillion generated in the third quarter of 2024 “but ₦2,022.39 billion (107.23 percent) above the ₦1,886.11 billion recorded in the corresponding period of 2023”.
A breakdown of the revenue showed that royalties (oil and gas), concessional rentals, and miscellaneous income (such as pipeline fees) all exceeded their quarterly estimates.
“A breakdown of the oil revenue performance in the fourth quarter of 2024 showed that, Royalties (Oil & Gas) of ₦2,184.64 billion, Concessional Rentals of ₦5.59 billion and Miscellaneous (Pipeline fees etc.) of ₦8.79 billion exceeded their quarterly estimate of ₦1,605.90 billion, ₦2.18 billion and ₦4.02 billion by ₦578.73 billion (36.04 percent), ₦3.41 billion (156.15 percent) and ₦4.77 billion (118.48 percent) respectively,” the report reads.
“Gas Flared Penalty and Exchange Gain which had zero projection, yielded ₦108.54 billion and ₦1,221.49 billion in the quarter under review.
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“On the other hand, Crude Oil and Gas Sales of ₦335.69 billion, Petroleum Profit and Gas Taxes of ₦1,249.68 billion and Incidental Oil Revenue (Royalty Recovery & Marginal Field) of ₦15.57 billion however fell below their quarterly estimates of ₦366.09 billion, ₦2,994.62 billion and ₦26.25 billion by ₦30.40 billion (8.30 percent), ₦1,744.95 billion (58.27 percent) and ₦10.69 billion (40.70 percent), respectively.”
According to the budget office, a total of N15,066.95 billion gross oil revenue was collected in the period under review as against N19,996.33 billion projected for the 2024 budget.
The office also said the figure represents a decrease of N4.929 trillion (24.65 percent) below the 2024 budget estimate but also N6.711 trillion (80.33 percent) above the “actual gross oil revenue of N8,355.21 billion collected in 2023”.
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