Wale Edun, Minister of Finance and Coordinating Minister of the Economy, reported that the government’s revenue from the oil sector jumped from 11% in 2023 to 30% in the first half of 2024.
 During Friday’s news conference in Abuja, Edun revealed this information in a statement.
The minister claims that recent adjustments to financial management have increased government revenue.
According to him, the changes required a thorough reorganisation of the financial systems used by the government.
He went on to say that these upgrades have significantly increased government revenue overall by improving the efficacy and efficiency of revenue collection.
“The government’s perseverance in raising non-oil revenue has continuously produced outstanding outcomes.”
“Without any tax increases, non-oil revenue for the first half of 2024 exceeded the revenue in the first half of 2023 by 30% above the 2024 budget target,” he stated.
Nigeria’s Fiscal Deficit Decreases.
Edun went on to say that the economic managers’ top focus has been to address the budget deficit.
According to him, the administration has concentrated its efforts on putting plans into place to reduce the deficit.
“In order to accomplish this, the federal government enhanced revenue collection and stopped numerous leaks during the final year of the Tinubu administration.”
“Aiming for 4.1% of GDP, the 2024 budget deficit is headed in the right direction, representing a decrease from the 6.1% deficit in 2023.”
“You can see that we are effectively close to the budgetary target on an annualised basis – we are at 4.4%,” Edun stated.
What to Note
Nigeria is still one of the continent’s top producers of crude oil. The nation still struggles with underinvestment in the oil industry despite its significance.
The industry’s ability to grow and become more efficient is hampered by this inadequate investment, which has an impact on revenue generation and production capacities.
Since oil is Nigeria’s main source of income, the country’s economic stability depends on its efficient administration. Government revenue is directly impacted by the sector’s success.
Several executive directives were signed by President Tinubu with the intention of promoting investment in the field. With incentives and measures aimed at restoring trust and promoting capital inflow, these decrees are meant to improve the investment climate.
Despite being in the first phases of execution, these executive initiatives have not yet yielded the anticipated outcomes. In spite of this, the government maintains its bullish outlook and predicts significant advancements in the upcoming year.
The objective is to draw $10 billion in investments into the industry, which would be a big step towards improving Nigeria’s economic prospects and reviving its oil industry.
