Nigeria's revenues rose in June and here's why

Nigeria’s gross revenues rose to N653.35 billion ($1.7 billion) in June from N517.8 billion in May.

According to Accountant General of the Federation Ahmed Idris, the increase in revenues was due to an increase in the price of crude oil in the international market and improved tax collection from the Federal Inland Revenue Service (FIRS).

The outbreak of the coronavirus disease (COVID-19) prompted a sharp fall in global oil prices.

Crude oil is Nigeria’s number one export. The crash in the price of the country's mainstay led to a drop in government revenues and a weakening of the nation's currency.

The global oil benchmark called Brent LCOc1 currently goes for $43 a barrel from a 21-year low below $16 in April.

Nigeria relies on crude oil sales for two-thirds of government revenue.

Ministries make presentations as President Muhammadu Buhari presides over virtual Federal Executive Council meeting with Vice President, Yemi Osinbajo in attendance. [Twitter/@BashirAhmaad] Pulse Nigeria

Nigeria further eased COVID-19 restrictions in June and July, with a ban on domestic air travel lifted as well.

Nigeria also generated N42.83 billion from exchange rate gains in June.

Finance Minister Zainab Ahmed has pushed for the Central Bank of Nigeria (CBN) to unify its multiple exchange rates so that the government can generate more Naira from its crude receipts.

In February, Nigeria increased VAT (Value Added Tax) to 7.5% from 5% to boost revenues.

The government now charges a stamp duty on POS and bank transactions as well, in order to generate enough money to fund the N10 trillion budget.