Neco 2021 Government Question 5

Nigeria is evaluating two trade agreements.\n\nAgreement X: reduces the tariff on imported machinery by 40\% of the existing rate and imposes a 5\% export tax on agricultural products.\n\nAgreement Y: imposes an additional 10\% import tariff on machinery (on top of the existing rate) and reduces the export tax on agricultural products by 30\% (the current export tax is zero).\n\nCurrently, Nigeria imports machinery worth \(\text{₦}200\) billion annually with a 20\% tariff and exports agricultural products worth \(\text{₦}150\) billion annually with no export tax. Assume the quantities remain unchanged and that tariffs are applied to the monetary value of the goods.\n\nWhich agreement results in a higher net change in government revenue, and what is that net change (in billions of naira)?