Nigeria’s federal revenue surged by 68% in 2024 to ₦20.98 trillion, according to the latest Budget Implementation Report released by the Budget Office of the Federation, signaling one of the strongest fiscal performances in recent years.
The report attributed the impressive growth primarily to a sharp increase in non-oil revenue, which rose to ₦16.09 trillion — a significant leap reflecting the government’s ongoing efforts to diversify its income base away from oil dependence.
According to the document, the rise in non-oil revenue was fueled by robust collections from Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise Duties, and the Electronic Money Transfer Levy (EMTL). Analysts say this indicates improved tax compliance, better enforcement, and digitalization of revenue systems across key government agencies.
Despite the overall improvement, oil revenue continued to underperform, falling short of its target by ₦4.93 trillion. The shortfall, the report noted, was due to production constraints, crude theft, and fluctuating international oil prices, which continue to weigh on Nigeria’s fiscal outlook.
“The decline in oil revenue remains a major concern, underscoring the need for accelerated reforms in the petroleum sector,” the report stated.
In a related development, the Budget Office also highlighted steady growth in external trade, with Nigeria’s total trade volume reaching ₦36.6 trillion in the fourth quarter of 2024. The figure represents a moderate rise in export activity amid global economic uncertainties and tighter international financing conditions.
Experts say the data reflects Nigeria’s gradual economic recovery, buoyed by improved tax administration and non-oil sector resilience, but warn that the government must sustain its diversification drive to reduce vulnerability to oil market volatility.
Fiscal analysts have also urged authorities to channel the increased revenue toward infrastructure, social welfare, and debt reduction, noting that sustained growth in non-oil sectors could strengthen Nigeria’s medium-term fiscal stability.
The Budget Office’s report forms part of the federal government’s quarterly monitoring framework, designed to assess revenue performance, expenditure efficiency, and progress toward macroeconomic targets under the 2024 fiscal plan.
