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Crude oil extraction continues to be the primary economic activity in Nigeria, overshadowing other sectors and hindering the country's overall economic development. Despite various initiatives aimed at diversifying the economy away from its heavy reliance on oil, Nigeria's economy remains largely undiversified and underdeveloped. This study aims to assess the revenue generated as well as analyse the level of economic diversification in Nigeria from 1980 to 2023. By doing so, it seeks to provide valuable insights for analysis, informed decision-making and effective monitoring of the nation's economic progress over the decades. The analytical research method was employed for this study using the integrated review. The extent of diversification was appraised and established by calculating the respective point estimators of the Concentration Index (C-Index) and the Diversification Quotient (DQ) for the analysed sectors of crude oil, manufacturing, agriculture, services and solid minerals. The findings indicate that Nigeria is significantly reliant on oil revenue, making it susceptible to variations in global oil prices. There is a marked improvement in non-oil revenue. Furthermore, the advent of democratic governance is associated with a considerable increase in national revenue. A robust correlation exists between crude oil prices, oil production levels, and Nigeria's efforts towards diversification. Overall, the Nigerian economy remains undiversified. To enhance diversification, the study suggests that Nigeria should aim for a more equitable distribution of GDP among different sectors, improve infrastructure, promote good governance, foster private sector involvement, alongside the strategic management of its oil resources to boost production and export potential.