The Federal Government said it missed its first quarter 2025 oil revenue target by N8.21 trillion or 64.35 per cent.
The government also incurred a fiscal deficit of N3.04 trillion during the period. This was N481.81 billion or 13.67 per cent below the projected quarterly fiscal deficit of N3.53 trillion.
These are contained in the first quarter 2025 budget implementation report (BIR) released by the Budget Office of the Federation yesterday.
The report shows that actual gross oil revenue stood at N4.55 trillion. This translates to an N8.21 trillion or 64.35 per cent shortfall when compared with the quarterly prorate budget estimate of N12.76 trillion.
The performance, according to the report, was, however, N1.2 trillion (35.82 per cent) above the actual gross oil revenue of N3.35 trillion generated in the corresponding period of 2024.
The report shows that the actual net oil revenue that accrued to the government in the first quarter of 2025 was N3.91 trillion, showing a decrease of N6.97 trillion or 64.05 per cent from the prorate quarterly budget estimate of N10.88 trillion.
The inflow was, however, N0.56 trillion or 16.71 per cent) and N1.03 trillion or 35.76 per cent higher than the N3.35 trillion and N2.88 trillion net oil revenue reported in the fourth and first quarters of 2024, respectively
A breakdown of the oil revenue performance in the first quarter of 2025 shows that concessional rentals of N15.07 billion, miscellaneous (pipeline fees etc.) of N15.02 billion and incidental oil revenue (royalty recovery and marginal field) of N332.92 billion exceeded their quarterly budget estimates of N1.03 billion, N5.86 billion and N295.88 billion by N14.04 billion (1,365.22 per cent), N9.16 billion (156.26 per cent) and N37.04 billion (12.52 per cent) respectively.
The report said all other oil revenue items performed below their quarterly budget projections. Crude oil and gas sales were N438.54 billion; petroleum profit and gas taxes were N1.81 trillion and royalties (oil and gas) were N1.91 trillion.
They fell below their quarterly estimates of N1.18 trillion, N7.85 trillion and N3.43 trillion by N739.65 billion (62.78 per cent), N6.03 trillion (76.89 per cent) and N1.52 trillion (44.19 per cent), respectively.+
On the other hand, gas flared penalty and exchange gain, which had zero projection, delivered N124.87 billion and N9.57 billion, respectively, in the quarter.
The report attributed the poor net oil revenue performance to the lower than projected crude oil revenue outturn, fall in production and lifting, as well as poor industry investments in the near past.
It is also blamed for the more than prorated oil and gas deductions recorded.
The Federal Government had projected a crude oil benchmark price of $75 per barrel and a production level of 2.06 million barrels per day.
The Federal Government, in the report, said it generated a gross total of N4.39 trillion non-oil revenue in the quarter.
This also shows a decrease of N1.66 trillion or 27.45 per cent from the quarterly estimate of N6.05 trillion. A breakdown of the non-oil revenue items showed that the value-added tax of N2.06 trillion and Electronic Money Transfer Levy (EMTL) of N84.05 billion were higher than the quarterly projection of N1.87 trillion and N57.50 billion.
Company income tax of N1.26 trillion, Nigerian Police Trust Fund (NPTF) Levy of N0.06 billion, customs and excise duties of N905.69 billion and special levies of N77.66 billion performed below their quarterly estimates.
The report attributed the poor performance of some of the non-oil revenue sources to lower than projected GDP growth in the period.
Except for special levies, all other non-oil revenue items were above their respective 2024 first-quarter performance.
It noted that the enhanced performance of the non-oil revenue items as against the 2024 first quarter figures was largely due to the recovering domestic economic activities following measures put in place by the government.
The extension of the implementation of the 2024 capital budget and the improved performances of the various revenue-generating agencies during the period are also some of the factors that enhance the performance of non-oil revenue items.
