Federal Government Records ₦12.81 Trillion Revenue from Crude Oil Exports in Third Quarter

The Federal Government generated ₦12.81 trillion from crude oil exports in the third quarter of the year, underscoring the continued importance of oil revenue to Nigeria’s fiscal position despite ongoing efforts to diversify the economy. Reports by Punch and other Nigerian news outlets indicate that the figure was released by the National Bureau of Statistics as part of its foreign trade data for the period.

According to the NBS, crude oil remained Nigeria’s dominant export commodity during the quarter under review, accounting for a substantial share of total export earnings. The strong revenue performance was attributed to a combination of improved crude oil output, relatively stable global oil prices, and increased export volumes compared to earlier periods affected by production disruptions.

The data showed that oil exports continued to outperform non-oil exports, reinforcing Nigeria’s heavy reliance on the petroleum sector for foreign exchange earnings. Analysts noted that while the ₦12.81 trillion revenue represents a significant inflow, it also highlights the structural challenge of limited diversification in the country’s export base.

Reports indicated that crude oil exports were boosted by improved security conditions in oil-producing areas, which helped reduce pipeline vandalism and crude theft. These developments reportedly contributed to higher production levels, allowing Nigeria to meet more of its export commitments during the quarter.

Industry observers pointed out that the earnings also reflected favourable pricing in the international oil market, where crude prices remained relatively firm despite global economic uncertainties. The combination of price stability and increased output helped shore up government revenues at a time of mounting fiscal pressures.

The NBS report further revealed that oil exports dominated Nigeria’s trade structure, with Asia and Europe remaining major destinations for Nigerian crude. Analysts noted that sustained demand from these markets helped support export earnings, even as global energy markets adjusted to geopolitical tensions and supply shifts.

Despite the positive revenue figures, economists cautioned that oil earnings remain vulnerable to external shocks, including price volatility and changes in global energy demand. They stressed that reliance on crude oil exposes government finances to risks beyond domestic control, reinforcing the need for accelerated economic diversification.

The third-quarter performance comes amid broader fiscal reforms aimed at strengthening public revenue and reducing budget deficits. Government officials have repeatedly emphasised the need to maximise oil revenues by improving production efficiency and reducing losses from theft and operational inefficiencies.

Reports indicated that oil revenue continues to play a critical role in funding government expenditure, including infrastructure development, debt servicing, and social programmes. However, analysts warned that high oil earnings do not automatically translate into fiscal stability if spending pressures and debt obligations continue to rise.

The NBS data also showed that while oil exports surged, non-oil exports recorded comparatively modest growth, reflecting persistent challenges in agriculture, manufacturing, and solid minerals. Stakeholders have argued that addressing infrastructure gaps, logistics bottlenecks, and policy inconsistencies is essential to unlocking the potential of non-oil exports.

Economic experts noted that the ₦12.81 trillion oil export earnings could provide temporary relief for Nigeria’s foreign exchange reserves, helping to stabilise the naira and support external trade. However, they cautioned that sustained currency stability would depend on consistent export performance and improved investor confidence.

The data release comes at a time when Nigeria is pushing for increased local refining capacity to reduce reliance on fuel imports and retain more value within the domestic economy. Analysts observed that while crude exports remain lucrative, developing downstream capacity could help cushion the economy against fluctuations in global oil markets.

Reports further indicated that the government is also exploring strategies to expand gas exports as part of a broader energy transition agenda. Gas is seen as a cleaner alternative that could generate additional export revenue while supporting domestic industrialisation.

Civil society groups and policy analysts have called for greater transparency and accountability in the management of oil revenues. They argue that improved governance is essential to ensure that windfall earnings from crude exports translate into tangible improvements in public services and economic development.

The NBS figures have also renewed debate over Nigeria’s fiscal resilience, with some analysts urging policymakers to use periods of strong oil revenue to build buffers, reduce debt, and invest in productive sectors. They warned that failure to do so could leave the economy exposed during periods of low oil prices.

Despite these concerns, the third-quarter oil export earnings were widely seen as a positive development amid economic headwinds. Market watchers said the figures reflect gradual improvements in production performance and export capacity, offering cautious optimism for the remainder of the year.

The government has reiterated its commitment to sustaining oil production while advancing reforms in the energy sector. These include regulatory improvements, investment incentives, and efforts to attract capital into upstream and midstream operations.

In summary, the Federal Government’s ₦12.81 trillion revenue from crude oil exports in the third quarter highlights the continued dominance of oil in Nigeria’s export earnings. While the performance provides short-term fiscal support, analysts stress that long-term economic stability will depend on effective management of oil revenues and accelerated diversification into non-oil sectors.