Nigeria’s gross revenues climbed to N653.35 billion ($1.7 billion) in June, a 26.2% leap over the figure for May, standing at N517.8 billion due to growth in crude and tax receipts as oil prices recovered from a record crash in April, Reuters reported on Sunday, quoting Accountant-General Ahmed Idris.
The outbreak of the novel coronavirus early in the year had spurred a steep slump in the prices of oil, which contributes over 60 per cent of the revenue of Africa’s biggest crude producer.
It has equally weakened its currency, depleted its crude oil earnings and triggered a profound financing gap, making it to rack up debts from multilateral lenders to fund infrastructural projects and its spending plan for this year.
Brent, the global benchmark, has since rallied to $43 a barrel after touching a 21-year low below $16 in April.
The Nigerian government amassed N42.83 billion from exchange rate gains, it said in a statement seen by Reuters.
Revenues from crude oil sales and Value Added Tax (VAT) constituted the bulk of gross income.
Zainab Ahmed, the Finance Minister has championed the harmonisation of Nigeria’s multiple exchange rates to enable government to generate more naira from oil receipts following pressures from the International Monetary Fund and World Bank.
Government upped VAT from 5% to 7.5% in February to strengthen revenues. Lower government revenue might worsen Nigeria’s debt to revenue ratio in 2020 from last year.
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