The Minister of Finance, Wale Edun, has announced that federal government revenue from the oil sector increased from 11% in 2023 to 30% in the first half of 2024.
This surge is attributed to recent financial reforms and improved management practices.
During a press briefing in Abuja, Edun said the government’s strategic overhaul of financial systems has boosted efficiency in revenue collection.
These changes have not only enhanced oil revenue but also strengthened the overall fiscal health of the nation.
For the first half of 2024, non-oil revenue exceeded the previous year’s figures by 30%, surpassing budget targets without increasing taxes.
Addressing the budget deficit, Edun noted that significant strides have been made, with the 2024 budget deficit projected to improve to 4.1% of GDP, down from 6.1% in 2023.
The administration’s focus on plugging revenue leakages and enhancing collection methods has been pivotal in achieving these results.
Oil Sector Challenges and Prospects
Despite being a leading producer of crude oil, Nigeria faces challenges in the sector due to underinvestment.
This has hindered potential growth and efficiency. However, President Tinubu has signed executive orders to stimulate investment, offering incentives and reforms to attract capital inflow.
The government aims to draw $10 billion in investments, which would significantly revitalize the oil industry and boost economic prospects.
While these measures are still in their early stages, optimism remains high for substantial progress in the coming year.