Budget Office declares N20.78trn FG’s revenue inflow in 2024

The Budget Office of the Federation has disclosed that the Federal Government revenue inflow stood at N20.78 trillion in 2024, a 68.1 per cent increase compared to N12.48trillion realised in 2023.

The latest  report  by  the Budget Offiice revealed that the figure fell N4.89trillion or 18.9 per cent short of the government’s annual target of N25.87trillion, as contained in the 2024 Appropriation Act signed by President Bola Tinubu in January 2024.

The report read, “Federal Government revenue totalled N20.78tn (66.59 per cent higher than 2023, but 19.68 per cent below the target.

“Oil revenue underperformed at N15.07trillion, while non-oil evenue outperformed at N16.09trillion. Expenditure was N27.47trillion. Non-debt recurrent spending stood at   N8.53trillion; debt service reached N11.03trillion. N5.81trilliion was released for capital projects, with 81.91 per cent utilised by MDAs. The fiscal deficit was N9.18trillion, financed through domestic borrowing. Debt-to-GDP rose to 61.22 per cent.”

When MDAs fail to fully utilise funds released to them for capital projects within a fiscal year, the unspent balance is legally required to be returned to the Federal Government’s treasury.

In the Implementation Report, the Budget Office attributed the growth largely to improved non-oil revenue performance driven by corporate tax collections, VAT receipts, customs duties, and electronic money transfer levies.

The report showed that non-oil revenue rose to N16.09trillion in 2024, exceeding the annual projection of N10.81trillion by 48.9 per cent. Key contributors included Company Income Tax, Value Added Tax, Electronic Money Transfer Levyand Customs revenue.

In contrast, gross oil revenue stood at N15.07trillion, representing a 24.7 per cent decline from the N19.99trillion projected in the budget. Despite this shortfall, oil earnings were still 80.8 per cent higher than the N8.35trillion recorded in 2023.

The Budget Office said oil and gas earnings accounted for only 17 per cent of total revenue in Q4 2024, reflecting the administration’s push to diversify income sources away from crude exports.

Meanwhile, revenue from the solid minerals sector reached N4.6billion, representing a 303.6 per cent increase from the previous quarter. The sharp rise, according to the ministry, underscores ongoing reforms to expand the country’s non-oil revenue base.

The report further showed that in Q4 alone, total revenue stood at N6.42trillion, marginally 0.6 per cent below the quarterly target of N6.46triillion, but N2.55trillion higher than the N3.87trillion recorded in Q4 2023.

However, the report noted that federation levies and government-owned enterprises fell below expectations, with GOEs’ retained revenue at N612.96billion about 14.3 per cent short of projections.

The government also reported no receipts from NLNG dividends, oil price royalty, or windfall taxes during the period.

According  to  the  report,  Ministries, Departments and Agencies (MDAs) of the Federal Government received a total of N5.81trillion for capital projects in the 2024 fiscal year.

The report showed that 81.91 per cent of the amount was utilised, reflecting improved budget performance and project execution across key infrastructure sectors despite fiscal pressures and revenue shortfalls.

The Budget Office noted that the utilisation rate underscores the government’s commitment to accelerating infrastructure delivery despite fiscal constraints and revenue shortfalls experienced during the period.