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Nigeria's revenue rose in July boosted by oil and tax receipts

Published 20/08/2020, 14:33
© Reuters.
LCO
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ABUJA, Aug 20 (Reuters) - Nigeria's gross revenues rose to
676.41 billion naira in July from 653.35 billion naira in June
due to higher crude oil sales and tax receipts, accountant
general Ahmed Idris said.
The price of oil, Nigeria's main export, fell sharply early
this year as the coronavirus outbreak hit demand, cutting
government revenues, weakening the naira and creating a large
financing gap for the country.
The global oil benchmark Brent LCOc1 has since recovered
from a 21-year low below $16 in April. OPEC member Nigeria
relies on crude oil sales for two-thirds of government revenue.
The government said oil revenues with sales tax increased in
July, while corporate taxes and import duty decreased. The
government also said the balance on its oil surplus savings
account stood at $72.41 million as at Aug. 19.
Income from crude sales and value added tax (VAT) made up
the bulk of the government's gross revenues.
Companies in Nigeria have seen profits slump especially in
the second quarter when the government imposed a lockdown to
slow the spread of the virus. Also, restrictions on
international travel and dollar shortages have hurt imports.
In February, Nigeria increased VAT to 7.5% from 5% to boost
revenues, seen among the lowest in the world. Lower government
revenues could worsen Nigeria's debt to revenue ratio this year.

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