How Nigeria Grew Oil And Gas Revenue By 70% In One Year – CBN Report

• The federal government announced plans to improve non-oil revenues and increase the ratio of total government revenues
• However, oil revenues seem to be increasing due to revenue from several sources, and making for a higher percentage of the total government earnings
• The latest economic report from the Central Bank of Nigeria shows that more efforts need to be put into improving non-oil revenues

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Nigeria has successfully grown its oil and gas sector revenues by 70% in one year, according to the Central Bank of Nigeria (CBN) Economic Report for February 2025.

The report, which was released recently, showed that Nigeria’s earnings from the oil and gas sector were ₦813.22 billion in February 2025, 70.49% higher than the ₦477 billion in February 2024.

This growth happened despite the 4.55% decline in domestic crude oil production to a daily average of 1.47 million barrels due to the reported disruptions along the Trans-Niger Pipeline and reduced output from key terminals.

Breakdown of Nigeria’s oil and gas revenue

According to the CBN report, only 6.3% of the total revenue, amounting to ₦51.33 billion for the month, came from crude oil and gas exports oil and gas exports.

The ₦51.3 billion also marked a 54.37% decline from the ₦112.48 billion recorded in February 2024, and a 23.75% growth from January 2025.

Note that in the same month, global crude oil prices fell sharply due to expectations of a peace deal between Russia and Ukraine, and increased production from other refineries.

The price of Bonny Light dropped by 4.56% from $80.76 per barrel in January 2025 to $77.08 in February and even further in the next month.

Petroleum Profit Tax (PPT) for the month amounted to ₦67.49 billion, accounting for 8.3% of the total earnings. This is a 39.55% drop from the ₦111.64 billion collected in January 2025, and a 22.46% drop from the N87.04 billion in February 2024.

In royalties, the government collected ₦519.57 billion to make up 63.9% of the total revenue. This is 101.87% higher than the N257.38 billion collected in February 2024, and 53.71% higher than the N338.01 billion collected in January 2025.

The CBN Economic Report for February 2025 also shows that there were zero earnings from domestic sales of crude oil and gas during the month, Channels News reports.

The report details monthly revenue figures, production statistics, and sectoral contributions to the federal government’s earnings, offering valuable insights into the factors influencing Nigeria’s fiscal landscape during this period.

Meanwhile, Nigeria earned ₦174.83 billion from other oil sources, up by 21.56% from ₦143.82 billion earned in January 2025. This figure also marks a massive 769.8% growth from the ₦20.1 billion earned in February 2024.

Oil revenue accounts for 30% of FG revenue

With total revenue from the Petroleum industry at N813.22 billion, oil revenues now accounts for about 30% of total federal government revenue.

The CBN report shows that the federal government collected ₦2.732 trillion in revenue across all sources in February 2025, meaning that non-oil revenue accounted for ₦1.9 trillion, or 70% of total revenue in the month.

Recall that as of October 2024, oil revenues were N520 billion and accounted for 21.5% of total revenue, while non-oil revenues, still at N1.9 trillion, made up 78.5%.

World Bank urges FG to increase non-oil revenues

In related news, the World Bank has told the federal government how it can increase non-oil revenues to compete with oil revenue.

Legit.ng reported that the bank urged the federal government to increase the tax and duties on several categories of products especially the sin products.

This was one of the conditions laid out by the bank before the government can access the already-approved $750 million loan.

Source: Legit.ng