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 was down by 2.48 per cent on Friday, June 19, with the Unlisted Security Index shedding 108.36 points to close at 4,252.73 points compared with the previous day’s 4,361.09 points.
During the trading day, the market capitalisation of the OTC securities exchange dropped 2.18 per cent or N67.29 billion to settle at N2.552 trillion, in contrast to Thursday’s N2.609 trillion.
The alternative stock market was in the red yesterday after finishing with three price losers led by Central Securities Clearing System (CSCS) Plc, which gave up N8.57 to trade at N77.77 per share versus the preceding day’s N86.34. FrieslandCampina Wamco Nigeria Plc lost N8.19 to quote at N170.00 per unit compared with the previous session’s N178.19 per unit, and Food Concepts Plc crashed by 26 Kobo to end at N2.51 per share versus N2.77 per share.
Business Post reports that there were also three price gainers during the session, led by Golden Capital Plc, which chalked up 67 Kobo to sell at N13.67 per unit versus N13.00 per unit. Afriland Properties Plc gained 65 Kobo to trade at N16.85 per share compared with the previous price of N16.20 per share, and MRS Oil added 3 Kobo to close at N142.23 per unit versus N142.00 per unit.
The volume of trades was up by 20.3 per cent on Friday to 954,106 units from 792,835 units, and the number of deals increased by 75 per cent to 35 deals from 20 deals, while the value of transactions went down by 12.9 per cent to N42.7 million from N49.0 million.
The most traded stock by value on a year-to-date basis was Great Nigeria Insurance (GNI) Plc, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 67.8 million units exchanged for N4.7 billion.
The most traded stock by volume on a year-to-date basis was also GNI Plc, with 3.4 billion units valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The local stock exchange remained in the red on Friday after it further depreciated by 0.62 per cent due to panic sell-offs in some bellwether equities.
NAHCO lost 10.00 per cent to trade at N148.50, Royal Exchange depreciated by 10.00 per cent to N1.53, GTCO slumped by 9.97 per cent to N115.55, First Holdco dropped 9.84 per cent to quote at N55.00, and Neimeth slipped by 9.60 per cent to N28.12.
On the flip side, Deap Capital increased by 9.89 per cent to N4.89, RT Briscoe expanded by 9.62 per cent to N13.10, International Energy Insurance advanced by 7.43 per cent to N5.06, Jaiz Bank gained 7.14 per cent to sell for N9.00, and Living Trust Mortgage Bank rose by 5.26 per cent to N4.00.
During the session, the energy index chalked up 2.35 per cent, but this was not enough to lift the Nigerian Exchange (NGX) Limited when the closing gong was struck by 4 pm to signify the close of trading activities.
This was because the banking sector lost 4.41 per cent, the insurance counter shed 1.52 per cent, the industrial goods space declined by 0.71 per cent, and the consumer goods segment tumbled by 0.13 per cent.
Consequently, the All-Share Index (ASI) contracted by 1,463.45 points to 235,941.27 points from 237,404.92 points, and the market capitalisation retreated by M939 billion to N151.327 trillion from N152.266 trillion.
The activity chart was topped by Access Holdings, which posted a turnover of 65.0 million shares valued at N1.5 billion. Zenith Bank sold 35.2 million stocks worth N3.9 billion, Sterling Holdings exchanged 28.4 million equities for N217.8 million, UBA transacted 16.3 million shares valued at N650.7 million, and GTCO traded 14.0 million stocks worth N1.8 billion.
In all, investors transacted 440.4 million equities for N24.7 billion in 50,273 deals, in contrast to the 691.6 million equities valued at N116.9 billion traded in 50,025 deals on Thursday, implying an uptick in the number of deals by 0.50 per cent, and a decrease in the trading volume and value by 36.32 per cent and 78.87 per cent, respectively.
By Adedapo Adesanya
The Naira again depreciated against the United States Dollar by N7.16 or 0.53 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 19, to N1,370.46/$1 from the previous day’s N1,363.30/$1.
In the same vein, the Nigerian currency lost N9.07 against the Pound Sterling at the official market yesterday to trade at N1,814.76/£1 compared with Thursday’s closing price of N1,805.69/£1, and crashed against the Euro by N6.43 to settle at N1,571.50/€1 versus N1,565.07/€1.
Also, the Naira weakened against the greenback in the black market during the session by N5 to sell for N1,390/$1, in contrast to the preceding day’s N1,385/$1, and at the GTBank FX desk, it shed N3 to close at N1,376/$1 versus N1,373/$1.
The official market’s FX liquidity has been facing pressure over the last three trading sessions, contributing to a decline in the official exchange rate due to rising demand for foreign payments.
FX reserves rose to $51.03 billion, the highest level since January 20, 2009, according to data obtained from the Central Bank of Nigeria (CBN). The figure also represents the highest since the beginning of the year and under the administration of the current Governor of CBN, Mr Yemi Cardoso.
The latest figure underscores the steady strengthening of Nigeria’s external buffers, which continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability.
Meanwhile, the cryptocurrency market was mixed, with Bitcoin (BTC) up by 0.8 per cent to $63,225.80 after trading activity was relatively subdued due to a US federal holiday, as the absence of stock and bond market activity led to quieter conditions across crypto markets, even though digital assets continue to trade around the clock.
Further, TRON (TRX) also gained 0.8 per cent to sell at $0.3230, Binance Coin (BNB) jumped 0.5 per cent to $579.84, and Ethereum (ETH) appreciated by 0.1 per cent to $1,704.23.
On the flip side, Ripple (XRP) declined by 0.9 per cent to $1.13, Cardano (ADA) shed 0.8 per cent to trade at $0.1611, Solana (SOL) fell by 0.1 per cent to $69.23, and Dogecoin (DOGE) slipped by 0.1 per cent to $0.0831, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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