Nigeria’s non-oil revenue finally hit N1.9 trillion in November 2024, according to the just-released Central Bank of Nigeria (CBN) Monthly Economic Report......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
This is the highest figure ever recorded in a single month and marks a significant growth from the figure recorded in October 2024.
The figure is also 16.40% higher than the previous month’s figures, and about 53% higher than the growth target set by the government.
Corporate taxes, excise duties drive non-oil revenues up
The CBN monthly economic report also shows that the growth was largely driven by higher revenues from corporate taxes, as well as Customs & Excise duties, the SUN reports.
According to CBN, the relevant agencies drove revenue collection from these avenues, and enforced tax regulations to avoid incidences of evasion.
The apex bank also noted in the report that the increase in corporate taxes indicates a full post-pandemic recovery and increased profitability for businesses in Nigeria; while the higher customs and excise duties resulted from increased tariffs to discourage imports and help local industries grow.
Recall that the Federal Inland Revenue Service set a new record with its’ N21.6 trillion revenue in 2024, higher than the N19.4 trillion target.
Nigerian Customs Service also announced that it raked in a revenue of N5.14 trillion in 2024, all part of the non-oil revenues.
Oil revenues grow but fail to hit target
Nigeria’s oil revenues also saw significant growth in the period, hitting N520 billion. This marks about 42.63% growth from the previous month.
The report says this growth is attributed to the receipt of higher royalties, petroleum profit taxes, and company income taxes in the sector.
The figure is, however, 70.46% shy of its target, indicative of challenges plaguing Nigeria’s oil sector.
Challenges in the sector include pipeline vandalism, crude thefts and fluctuations in the global prices of crude oil.
Recall that Nigeria still struggles to meet its crude oil production quota as outlined in the OPEC+ agreement.
Non-oil revenues account for 78% of total revenues
With this recent CBN report, Nigeria’s oil revenues now account for about 21.5% of total revenues, while non-oil revenues have increased to 78.5%.
This shows that the government’s attempt to diversify the economy and reduce reliance on oil is yielding results, especially as the oil revenues are now being impacted by challenges in the sector and volatile global prices.
Recall that the Nigeria Extractive Industries Transparency Initiative (NEITI) recently disclosed up to $6.1 billion in debt owed to the government by oil and gas operators.
Nigeria’s oil revenues to take a hit
In related news, there are concerns that President Donald Trump’s new energy policy could significantly hit Nigeria’s oil revenues.
If this happens and crude prices fall below $75 per barrel, Nigeria could end up with lower oil revenues than projected in 2025.
Analysts have, however, identified a few upsides to the new policy.