Nigeria’s non-oil revenue rose significantly to N1.90 trillion in November 2024, marking a 16.40% increase compared to October and surpassing the monthly target by 53.19%.
This is according to the newly-released Central Bank of Nigeria’s (CBN) Monthly Economic Report.
The CBN said “non-oil revenue, at N1.90 trillion rose by 16.40 and 53.19 per cent relative to the levels in the preceding month and the monthly target, respectively. The rise was due to higher receipts from corporate tax and customs & excise duties.”
The CBN report attributed the rise in non-oil revenue to higher receipts from corporate tax, customs duties, and excise duties. Increased business activity, improved tax compliance, and stricter enforcement of customs regulations contributed to the substantial revenue boost.
Corporate tax collections remained a strong revenue driver as businesses recorded improved profitability amid Nigeria’s post-pandemic economic recovery. Additionally, customs and excise duties benefited from enhanced trade facilitation and tariff adjustments aimed at boosting local manufacturing.
Oil Revenue Sees Modest Gains but Misses Target
Oil revenue also experienced an increase, rising 42.63% month-on-month to N0.52 trillion in November, driven by improved collections from Petroleum Profit Tax (PPT), royalties, and Company Income Tax (CIT) from upstream operations. However, despite the surge, oil revenue fell significantly short of its target by 70.46%, demonstrating the continued challenges facing Nigeria’s oil sector.
“Oil revenue increased by 42.63 per cent to N0.52 trillion from its level in October 2024, on account of higher collections from petroleum profit tax (PPT), royalties, company income tax (CIT) upstream. It however, fell short of the target by 70.46 per cent,” the report said.
Factors affecting oil revenue performance include production disruptions, pipeline vandalism, and fluctuations in global oil prices. Nigeria has struggled to meet its crude production quotas under OPEC+ agreements, impacting expected revenue inflows from the petroleum sector.
Economic Implications and Fiscal Outlook
The strong performance of non-oil revenue highlights the increasing importance of Nigeria’s economic diversification efforts. The federal government has intensified measures to broaden the revenue base, reducing reliance on volatile oil earnings.
However, the shortfall in oil revenue emphasizes the need for sustained reforms in the energy sector. Efforts to improve local refining capacity, curb crude oil theft, and enhance investment in the oil and gas industry will be critical to stabilizing revenue inflows.
The government’s fiscal strategy will likely focus on strengthening tax administration, expanding the digital economy tax net, and leveraging public-private partnerships (PPPs) to enhance revenue generation across sectors.
