Nigeria’s revenue growth is heavily influenced by fluctuations in oil prices, according to Abubakar Bagudu, Minister of Budget and Economic Planning.

Speaking at the launch of the May 2025 edition of the World Bank Nigeria Development Update (NDU) in Abuja, Bagudu highlighted the role of oil price adjustments in boosting the country’s revenue.

“The federal government’s revenue rose to 4.5 percent of GDP in 2024,” Bagudu revealed, emphasizing that historical patterns show a direct link between oil prices and revenue growth.

“Revenues have historically been adjusted in response to oil prices. There was a time when oil prices were over $100 per barrel, yet some states couldn’t pay salaries,” he said.

Bagudu also noted that, despite Nigeria’s economic challenges, there has been progress in revenue growth and reducing debt at the state level.

“Today, we are seeing increased revenues to subnationals and even a reduction in their debt levels,” he added.The minister further explained the government’s plan to stimulate grassroots development, focusing on local government areas as economic growth hubs.

“This is an inclusive approach. We believe that we can unlock significant growth by focusing on ward-level economic opportunities,” Bagudu stated.

Bagudu also addressed the country’s ongoing reform efforts, praising the recent World Bank report which affirmed the impact of Nigeria’s economic strategy.

He urged continued focus on fiscal discipline, saying, “The budget must reflect our potential, not our indulgences.”