The Federal Government’s earnings from the oil and gas sector surged to N12.25 trillion in 2024, driven largely by the sharp decline in the value of the naira, according to new data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
This figure marks a massive jump from the N4.3 trillion recorded in 2023—a rise of nearly 200%. The increase came after the government’s decision in June 2023 to float the naira, causing the local currency to plummet from about N473 to over N1,600 per dollar by 2024.
Because most of NUPRC’s revenue is earned in U.S. dollars, the weaker naira meant those dollar inflows converted into much higher amounts in local currency. Oil and gas royalties made up the bulk of the earnings, contributing N11.08 trillion, compared to N3.76 trillion in 2023.
Gas flare penalties nearly tripled from N140.5 billion to N391.3 billion, while earnings from concession rentals more than doubled to N23.7 billion. Signature bonuses increased to N369.6 billion, and lease renewals, which had no revenue in 2023, brought in N230.7 billion in 2024.
Although the commission had projected N6.93 trillion in revenue for the year, it surpassed expectations by over 176%. NUPRC Chief Executive Gbenga Komolafe said the commission is now targeting N15 trillion in 2025 and has developed a new strategy to meet that goal.
However, some experts have warned that the jump in naira revenue may not reflect actual growth. Economist Prof. Segun Ajibola argued that because the earnings are originally in dollars, presenting only naira figures gives a skewed picture. He called for a comparison based on dollar values to better assess performance.
By that measure, the commission’s 2024 earnings amount to about $7.66 billion at an exchange rate of N1,600 to the dollar—only slightly higher than the $6.21 billion earned in 2023 using an average rate of N700 to the dollar.
Ajibola stressed that focusing on inflated naira conversions creates a misleading sense of progress. “To measure real improvement, we should compare dollar-to-dollar, not naira-to-naira in different years,” he said.
Despite the debate over currency effects, the revenue boost offers a financial cushion for the government, which observers say must now ensure the funds are directed toward national development.
