Nigeria’s oil revenue declined by 22 percent to N3.9 trillion in the fourth quarter of 2024, reflecting a notable shortfall from the federal government’s budgetary target, according to the Budget Office of the Federation’s Q4 2024 Budget Implementation Report.

The report, according  to Nairametrics, revealed that the country recorded N3.91 trillion in gross oil revenue, which was N1.09 trillion (21.82 percent) below the prorated quarterly estimate. The figure also represented a drop of N714.61 billion (15.46 percent) compared to the N4.62 trillion recorded in the preceding quarter. However, it marked a significant improvement of 107 percent over the N1.89 trillion generated in the same period of 2023.

In terms of revenue components, Royalties from Oil and Gas brought in N2.18 trillion, surpassing the quarterly target of N1.61 trillion by N578.73 billion (36 percent). Concessional Rentals rose to N5.59 billion, exceeding expectations by over 156 percent, while Miscellaneous Revenue — covering pipeline fees and related charges — totalled N8.79 billion, more than double the projected N4.02 billion.

The Budget Office also noted that Gas Flared Penalty and Exchange Gain, which had no prior projections, contributed N108.54 billion and N1.22 trillion, respectively, during the quarter.

Despite these gains, key revenue streams underperformed. Crude Oil and Gas Sales stood at N335.69 billion, falling short of the N366.09 billion target by 8.3 percent. Petroleum Profit and Gas Taxes generated N1.25 trillion, well below the expected N2.99 trillion, while Incidental Oil Revenue from Royalty Recovery and Marginal Fields dropped to N15.57 billion, missing the target by 40.7 percent.

The overall decline underscores the continued volatility in Nigeria’s oil sector and the challenges of meeting fiscal targets despite higher royalties and unexpected exchange gains.