Norway is the fifth-largest oil exporter in the world, while Nigeria ranks among the top 10.

In December 2023, Norway produced 1.89 million barrels of crude oil per day, while Nigeria’s daily output was 1.57 million barrels.

Both countries, major players in the global oil market, have developed distinct strategies for managing their oil revenues to benefit both local communities and national economies.

At the fourth forum on revenue management, held in Juba on November 12, 2024, Ambassador Tukur Yahaya Maigari of Nigeria and Ambassador Roar Haugsdal of Norway shared valuable insights into their respective governments’ approaches to managing and distributing oil wealth within federal systems.

The two diplomats provided a comparative analysis of how their nations balance regional interests with the need for sustainable economic growth, offering important lessons for South Sudan and other resource-dependent countries.

Ambassador Maigari outlined Nigeria’s system, where oil-producing regions receive 13% of oil revenues. This allocation aims to address the environmental and social impacts of oil extraction while fostering regional development and reducing disparities.

He emphasized that this revenue-sharing mechanism is part of Nigeria’s broader federal structure, where the central government collects oil revenues and redistributes them among federal, state, and local governments, with specific percentages earmarked for development needs.

In contrast, Ambassador Haugsdal explained Norway’s approach, which does not allocate a fixed percentage of oil revenue to oil-producing areas.

Instead, the Norwegian government collects 74% of oil companies’ profits in taxes, directing this revenue into the Government Pension Fund Global (the Oil Fund), one of the world’s largest sovereign wealth funds.

This system ensures that oil revenues benefit the entire nation rather than just the oil-producing regions.

Ambassador Haugsdal emphasized that Norway uses its wealth to invest in future generations, diversify its economy, and ensure long-term stability while reducing its dependency on oil.