Nigeria’s gross revenues rose to N653.3billion naira in June from N517.8b in May signaling an increase of N135.1b month on month.
This increase was triggered by higher crude and tax receipts, Accountant-General Ahmed Idris said, as oil prices recovered from April’s crash.
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Recall that the coronavirus outbreak earlier this year provoked a sharp fall in oil prices which is Nigeria’s main export, slashing government revenues, weakening its currency, and creating a large financing gap for the country.
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The global benchmark Brent has since recovered to about $43 a barrel from a 21-year low below $16 in April and has improved the country’s earning.
The government further generated N42.83b from exchange rate gains, it said in a statement. Income from crude sales and Value Added Tax (VAT) made up the bulk of gross revenues. In February, Nigeria increased VAT to 7.5% from 5% to boost revenues, seen among the lowest in the world.
Recall that Nigeria relies on crude oil sales for two-thirds of government revenue and Nigeria has moved to see the Central Bank of Nigeria, CBN unify its multiple exchange rates so that the government can generate more naira from its crude receipts.
