The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has revealed that government revenue obtained from the oil sector increased from 11% in 2023 to 30% in the first half of 2024.
Edun made this disclosure in a statement during a press briefing in Abuja on Friday.
According to the minister, government revenue has seen an increase due to recent changes in financial management.
He said the adjustments involved a comprehensive reconfiguration of the government’s financial systems.
He added that these improvements have effectively enhanced the efficiency and effectiveness of revenue collection, leading to a notable boost in overall government income.
“The government’s determination to mobilise non-oil revenue has consistently delivered impressive results.
“For the half-year 2024, non-oil revenue surpassed the revenue in the first half of 2023 by 30 per cent above the 2024 budget target without any increases in taxes,” he said.
Nigeria’s budget deficit has reduced
Speaking further, Edun stated that addressing the budget deficit has been a top priority for the economic managers.
He said the government has focused its efforts on implementing strategies to minimize the shortfall.
“To achieve this, the federal government, in the last year of the Tinubu administration, improved government revenue collection and blocked a lot of leakages.
“The 2024 budget deficit has moved in the right direction, with a target of 4.1% of Gross Domestic Product (GDP), an improvement from the 6.1% deficit recorded in 2023.
“On an annualised basis, we are at 4.4%, so you can see we are effectively close to the budgetary target,” Edun said.
What you should know
Nigeria remains one of Africa’s leading producers of crude oil. Despite this prominence, the country continues to grapple with underinvestment in the oil sector.
This lack of adequate investment hampers the potential for further development and efficiency within the industry, affecting both production capabilities and revenue generation.
Oil is the primary source of revenue for the Nigerian government, making its effective management crucial for the country’s economic stability. The sector’s performance directly influences government income.
President Tinubu signed several executive orders aimed at stimulating investment in the sector. These orders are designed to create a more favourable environment for investors, offering incentives and reforms intended to boost confidence and encourage capital inflow.
Although these executive measures are still in the early stages of implementation, they have yet to produce the desired results. Despite this, the government remains optimistic and projects that substantial progress will be made in the coming year.
The goal is to attract $10 billion in investments to the sector, which would mark a significant step toward revitalizing Nigeria’s oil industry and enhancing its economic prospects.
