Nigeria’s Oil Revenue: How It Is Shared, Spent and Accounted For

Nigeria earns oil revenue through crude production, royalties, taxes and other petroleum-related payments. The money does not simply remain in one account. It enters the public finance system and is shared among the Federal Government, states and local governments under established revenue-sharing arrangements. After allocation, each level of government must budget, release and spend its funds. Oil income can support salaries, debt servicing, security, healthcare, education, infrastructure and social programmes. A budgeted project is not necessarily a completed project, as funds may not be fully released or properly implemented. The key accountability questions are how much oil revenue was generated, how much government received, how it was allocated, who received payments and what Nigerians got in return. Citizens should be able to trace public money from oil production through budgets, contracts and completed projects.

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