Waec Model Questions Vol1 2020 Government Question 21

Nigeria signs a bilateral trade agreement with Country X that reduces the tariff on Nigerian cocoa exports from 15 % to 5 % and, at the same time, limits Nigeria's crude‑oil export to 10 000 barrels per month for a period of two years. Prior to the agreement, Nigeria's annual cocoa export value is ₦200 million and the tariff revenue is collected at the original 15 % rate. The country previously exported 100 000 barrels of crude oil each month, and the world price of crude oil is ₦70 per barrel. Assuming the volume of cocoa exported remains unchanged and that the oil export limitation is fully enforced, calculate the net change in Nigeria's total revenue (cocoa tariff revenue plus oil export revenue) over the two‑year period as a loss or gain in millions of naira.