Economy
Nigeria’s Oil Revenue Down 43.3% to N1.08trn in One Year
By Adedapo Adesanya
Nigeria’s oil revenue fell by about 43.3 per cent or N824.66 billion to N1.08 trillion in 2024 from the N1.90 trillion recorded in 2023, according to latest figures from the Budget Implementation Report for the fourth quarter of 2024 released by the Budget Office of the Federation.
The decrease in revenue highlights a drift toward taxes and royalties as the dominant contributors. Petroleum Profit Tax and Company Income Tax brought in N6 trillion, while royalties generated N6.99 trillion, which is nearly triple the previous year.
According to the budget office, this was aided by improved compliance and changes under the Petroleum Industry Act (PIA) 2021.
Total oil and gas revenue before deductions stood at N15.07 trillion in 2024, against a budget of N19.99 trillion. This means that actual inflows fell short of the budget by N4.93 trillion or 24.65 per cent.
Gas-flaring penalties rose to N391.26 billion, up 178 per cent from 2023. Incidental revenue from royalty recovery and marginal-field settlements also more than doubled, while pipeline-fee income increased to N35.2 billion.
One of the largest boosts came from exchange-rate gains, which surged to ₦4.24 trillion from ₦791.88 billion in 2023 following currency liberalisation.
After deductions, net oil revenue stood at N12.95 trillion, which is below the N16.98 trillion target but significantly higher than the N4.82 trillion recorded in 2023.
Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported that crude oil production rose to 442.21 million barrels in 2024, up 12.6 per cent from 2023. Daily average production increased to 1.43 million barrels per day from 1.27 million barrels.
Production recovered in the second half of the year, reaching 1.49 million barrels per day in December, the highest of 2024. Total liquids — crude and condensates — amounted to 492.34 million barrels, up from 451.09 million barrels in 2023.
Despite the gains, output reached only about 80 per cent of the government’s projection. Analysts attribute the shortfall to ongoing infrastructure constraints, crude theft, and underinvestment.
Compared with the previous year’s total of N8.36 trillion, however, oil and gas inflows almost doubled, showing an 80.33 per cent improvement.
The year-on-year increase was largely driven by stronger receipts from royalties, penalties, and exchange rate gains following the unification of the Naira, rather than from higher crude export volumes.
The quarterly pattern showed that oil receipts rose from N3.35 trillion in the first quarter to N3.91 trillion in the fourth quarter, but remained consistently below the projected quarterly average of N4.99 trillion.
Incidental oil revenue from royalty recovery and marginal field settlements climbed to N347.75 billion from N155.99 billion a year earlier, a growth of 122.93 per cent, while miscellaneous income, mainly from pipeline fees, increased to N35.2 billion from N16.38 billion.
One of the most significant contributors to the apparent growth in oil revenue was the exchange-rate gain, which soared to N4.24 trillion in 2024 from N791.88 billion in 2023, which is an increase of over 435 per cent.
The surge followed the Naira’s steep depreciation after exchange rate liberalisation, which inflated dollar-denominated oil earnings when converted into local currency.
After accounting for all deductions, the net oil revenue for 2024 stood at N12.95 trillion, against a budget target of N16.98 trillion, a difference of N4.03 trillion or 23.74 per cent.
When compared with the N4.82 trillion realised in 2023, the 2024 outcome represents a 168.83 per cent increase.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the green territory on Tuesday, January 6 as it further expanded by 1.08 per cent at the close of business.
During the session, the NASD Unlisted Security Index (NSI) closed higher by 38.63 points to 3,613.96 points from the 3,575.33 points it finished a day earlier, and the market capitalisation added N23.11 billion to close at N2.162 trillion compared with the N2.139 trillion it finished on Monday.
Yesterday, investors completed their transactions in 56 deals, 273.3 per cent higher than the 15 deals carried out on Monday.
In the same vein, the volume of securities transacted by investors increased by 594.9 per cent to 1.4 million units from the previous day’s 193,973 units and the value of securities surged by 525.0 per cent to N28.0 million from Monday’s N4.5 billion.
On a year-to-date basis, Central Securities Clearing System (CSCS) Plc ended the day as the most traded stock by value with 564,080 units sold for N20.8 million, trailed by Okitipupa Plc with the sale of 49,000 units valued at N10.9 million, and Geo-Fluids Plc with a turnover of 1.6 million units worth N10.7 million.
But, Industrial and General Insurance (IGI) Plc finished the session as the busiest stock on a year-to-date basis with 2.9 million units traded for N1.9 million, followed by Geo-Fluids Plc with 1.6 million units valued at N10.7 million, and CSCS Plc with 564,080 units transacted for N20.8 million.
Business Post reports that there were two price gainers on Tuesday and one price loser led by Geo-Fluids Plc, gave up 16 Kobo to close at N6.78 per unit versus N6.94 per unit.
However, FrieslandCampina Wamco Nigeria Plc added N5.17 to close at N56.87 per share compared with the previous day’s rate of N51.70 per share, and CSCS Plc appreciated by N2.74 to N38.74 per unit from N36.00 per unit.
By Dipo Olowookere
The second trading session of the week on the Nigerian Exchange (NGX) Limited ended on a positive note with a further 0.46 per cent surge on Tuesday.
The strong appetite for Nigerian stocks helped the market capitalisation of Customs Street to grow by N468 billion to N102.275 trillion from N101.807 trillion and the All-Share Index (ASI) soared by 732.86 points to 159,951.08 points from the previous day’s 159,218.22 points.
Yesterday, 65 equities ended on the gainers’ chart and 21 equities finished on the losers’ table, indicating a positive market breadth index and bullish investor sentiment.
Meyer expanded by 10.00 per cent to N14.30, Jaiz Bank appreciated by 10.00 per cent to N5.28, ABC Transport increased by 9.98 per cent to N4.96, and Austin Laz gained 9.94 per cent to close at N5.64.
Conversely, Aluminium Extrusion lost 9.96 per cent to settle at N21.70, Learn Africa decreased by 9.16 per cent to N5.95, Oando shrank by 7.69 per cent to N40.80, UBA weakened by 6.22 per cent to N43.00, and Access Holdings crashed by 6.00 per cent to N23.50.
Business Post reports that Linkage Assurance led the activity chart after it transacted 51.6 million shares worth N93.1 million, Sterling Holdings traded 49.2 million stocks valued at N368.5 million, Access Holdings sold 48.7 million equities for N1.2 billion, Mutual Benefits exchanged 34.7 million shares valued at N142.0 million, and Regency Alliance transacted 26.4 million stocks worth N33.6 million.
At the close of trades, market participants bought and sold 759.0 million equities for N19.9 billion in 54,212 deals during the session versus the 695.7 million equities worth N18.6 billion in 56,632 deals on Monday.
This showed that the volume of transactions and the value of trades went up by 9.10 per cent, and 6.99 per cent, respectively, while the number of deals went down by 4.27 per cent.
By Adedapo Adesanya
The Naira recorded a N10.24 or 0.72 per cent gain on the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, January 6, to close at N1,419.07/$1 compared with the previous day’s N1,429.31/$1, extending the stellar start to the year.
The local currency also improved its value against the Pound Sterling in the same market window yesterday by N2.98 to trade at N1,917.20/£1 versus N1,920.27/£1 and gained N7.12 on the Euro to end at N1,660.31/€1 compared with Monday’s closing price of N1,667.43/€1.
At the GTBank forex counter, the domestic currency appreciated against the greenback on Tuesday by N3 to finish at N1,435/$1 versus the previous value of N1,438/$1 and at the parallel market, it maintained stability on the Dollar at N1,470/$1.
The Naira gains come amid ease in demand seen in the softer market activity at the start of the year, alongside reduced participation from offshore investors.
FX inflows into the NFEM window declined by 20.67 per cent week on week to $593.70 million from $748.40 million in the previous week, according to a weekly report by Coronation Merchant Bank.
Market analysts expect that the Central Bank of Nigeria (CBN) will maintain its strategic interventions in the FX market and implement initiatives aimed at boosting liquidity and curbing speculative activities.
Meanwhile, the CBN’s gross external reserves edged up by 0.58 per cent, rising by $264.56 million at the start of the year to $45.50 billion, and increasing further to $45.56 billion as of January 2, 2025.
A look at the digital currency market showed that it was in red, triggered by renewed selling pressure with market analysts saying the digital currencies are starting the year in recalibration mode rather than retreat.
After earlier gains. Ripple (XRP) slumped by 5.2 per cent to $2.25, Cardano (ADA) declined by 2.9 per cent to $0.4111, Dogecoin (DOGE) shrank by 2.6 per cent to $0.1479, Bitcoin (BTC) slid by 1.4 per cent to $93,625.47, Litecoin (LTC) went down by 1.0 per cent to $82.90, and Solana (SOL) lost 0.4 per cent to sell $138.76.
On the flip side, Binance Coin (BNB) appreciated by 0.7 per cent to $914.53, and Ethereum (ETH) improved by 0.3 per cent to $3,248.36, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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