Connect with us

Business

Nigerian govt revenues hit N653bn in June on higher oil, tax receipts

Published

on

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.

READ ALSO: Nigerian govt eyes N1trn annually from stamp duties collection

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.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now