By Atoyebi Nike
Nigeria failed to meet its oil revenue targets in the first and second quarters of 2025, the Budget Office of the Federation has reported, highlighting persistent fiscal gaps despite slight year-on-year improvements.
According to the Q1 2025 budget implementation report, gross oil revenue stood at N4.55 trillion, falling short of the prorated quarterly projection of N12.76 trillion by N8.21 trillion, or 64.35 percent. The figure, however, was N1.20 trillion (35.82 percent) higher than the N3.35 trillion generated in the same period in 2024.
Non-oil revenue in the first quarter totaled N4.71 trillion, representing a 22.18 percent shortfall from the N6.05 trillion estimate. After cost deductions, the net distributable revenue for federal, state, and local governments was N8.06 trillion, 52.16 percent below the projected figure.
The report further noted that the federal government’s Q1 allocation of N10.22 trillion, comprising N5.25 trillion from oil and N4.97 trillion from other revenues, was underfunded, with only N4.95 trillion received 51.53 percent below the projection but 38.13 percent higher than the N3.59 trillion recorded in Q1 2024.
In the second quarter, gross oil revenue reached N4.77 trillion, missing the projected N12.76 trillion by N7.99 trillion (62.62 percent) but exceeding the N3.18 trillion collected in Q2 2024 by 33.33 percent. Non-oil revenue for Q2 was N4.46 trillion, slightly below the N6.06 trillion quarterly estimate, representing a decrease of N1.59 trillion.
The net distributable revenue for all tiers of government in Q2 amounted to N9.85 trillion, reflecting a shortfall of N7.01 trillion or 41.58 percent, underscoring continued challenges in meeting fiscal targets.
