Nigeria’s GDP rose in July boosted by oil and tax revenue – 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 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.
Read also: Uber, taxi passengers to pay more as Lagos sets new rules
The government said oil revenues with sales tax increase 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.