In July, it was reported that the Federation Accounts Allocation Committee (FAAC) announced that the FG, States, and Local Governments shared N651.18 billion in Federal account revenues for June 2020 after recording a total revenue of N653.35 billion.

The accountant said that sales tax from oil revenues increased for the month of July, coupled with increases from corporate and income duties. Meanwhile, oil surplus balance for the month of July was $72.41 million as at August 19.

Note that crude oil accounts for two-thirds of Nigeria’s revenue. However, the government has recently been making efforts to diversity its revenue streams, including by way of taxation. For instance, increased VAT also contributed to the increase in July’s revenue because the government recently increased VAT to 7.5% in February.

Crude Oil reached record lows in April due to falling demand caused by the pandemic and an oil trade war between the Saudis and Russia.

OPEC+ agreed to daily cuts of 9.6 million barrels a day, which has seen oil rise to $44 per barrel. OPEC plans to continue the production cuts till September, especially for countries like Nigeria and Iraq who have not quite been compliant.