The Accountant General of the Federation, Mr Ahmed Idris has disclosed that the Nation’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, as oil prices recovered from April’s crash.
It will be recalled that coronavirus outbreak early this year prompted a sharp fall in oil prices, which is Nigeria’s main export, slashing government revenues, weakening the Naira and creating a large financing gap for the country.
The global benchmark Brent has since recovered to about $43 a barrel from a 21-year low below $16 in April.
Nigeria, African leading oil exporter 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.
Zainab Ahmed, Nigerian Finance Minister 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.