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Nigeria's revenues rise in June on higher oil, tax receipts

Published 19/07/2020, 17:17
© Reuters.
LCO
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ABUJA, July 19 (Reuters) - Nigeria's gross revenues rose to
653.35 billion naira ($1.7 billion) in June from 517.8 billion
naira in May due to higher crude and tax receipts, accountant
general Ahmed Idris said, as oil prices recovered from
April's crash.
The coronavirus outbreak early this year prompted a sharp
fall in oil prices, Nigeria's main export, slashing government
revenues, weakening its currency and creating a large financing
gap for the country.
The global benchmark Brent LCOc1 has since recovered to
about $43 a barrel 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 generated 42.83 billion naira 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.
Finance Minister Zainab Ahmed has pushed for the central
bank to unify its multiple exchange rates so that the government
can generate more naira from its crude receipts.
In February, Nigeria increased VAT to 7.5% from 5% to boost
revenues, seen among the lowest in the world. Lower government
revenue could worsen Nigeria's debt to revenue ratio this year
from a year earlier. = 380.00 naira)

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