The Federal Government recorded a 179 percent increase in oil and gas royalties in 2024, rising from N2.49 trillion in 2023 to N6.99 trillion, according to the Budget Implementation Report for Q4 2024.
Royalties now account for 46 percent of total oil revenues, surpassing gross profits from crude sales, which fell to N1.08 trillion, down 43 percent from 2023.
Analysts credit the surge to the Petroleum Industry Act and tax incentives for deep offshore projects, which have attracted renewed investment in upstream production.
Also Read: Nigeria’s Oil Profit Falls 43% Despite Higher Production
While royalties remain strong, experts caution that they cannot replace revenue from actual crude production and sales, which are being hampered by pipeline vandalism, crude theft, and underinvestment. Government efforts are now focused on harnessing the full value chain to boost sustainable oil and gas earnings.
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