The Federation’s Budget Office reported that the federal government earned N3.34 billion in net oil revenue in the fourth quarter of 2024.

According to its Q4 2024 budget implementation report, this amount fell 21 per cent short of 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.”

The Budget Office attributed the weak revenue performance to a decline in oil production and lifting, pointing to low sector investment, crude oil theft, and high fiscal deductions, including costs related to the government’s petroleum subsidy policy.

The report also indicated that gross oil revenue reached N3.9 billion in Q4 2024, falling short of the prorated quarterly budget estimate by N1.09 billion, or 21.82 percent.

The Budget Office noted that this figure was N714.61 billion (15.46 percent) lower than the N4.623 trillion recorded in Q3 2024, but ₦2,022.39 billion (107.23 percent) higher than the N1,886.11 billion earned in the same period in 2023.

A breakdown of the revenue revealed that royalties from oil and gas, concessional rentals, and miscellaneous income—including pipeline fees—all surpassed 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.

“Gas Flared Penalty and Exchange Gain which had zero projection, yielded ₦108.54 billion and ₦1,221.49 billion in the quarter under review.

“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,” the report reads.

The Budget Office stated that a total of N15,066.95 billion in gross oil revenue was collected during the period under review, compared with the N19,996.33 billion projected in the 2024 budget.

The office noted that this represents a shortfall of N4.929 trillion (24.65 percent) against the 2024 budget estimate, but is N6.711 trillion (80.33 percent) higher than the actual gross oil revenue of N8,355.21 billion collected in 2023.