How Federal Govt Gained N1.4trn Revenue in 6 Months From Forex

Dec 23, 2023

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Nigeria’s foreign exchange reform in June increased the country’s revenue through FX differences to N1.36 trillion in six months.

The Federation Account Allocation Committee, FAAC, disclosed this in its communiqué.

The gains come as foreign exchange revaluation led to the depreciation of the naira, which currently sells at N885.88/$1, compared to its 2022 closing rate of N461.50/$1.

According to the communiqué, the difference increased from N0.639 billion in June to N364.87 billion in November.

From the gains, FAAC shared N320.89 billion in July, N229.67 billion in August, N186.81 billion in September and N262.89 billion in October.

Providing a breakdown of how the accrued revenue was shared among the three tiers of government, an analysis of the document indicated that after the federation account gained N625.77 billion from exchange difference revenue, state governments shared N317.36 billion, while the local government got N244.66 billion in six months.

Starnews Nigeria recalls that in the last six months, the Nigerian government made N907.05 billion in June, N966.110 in July, N1.1 trillion in August, N903.48 billion in September, N906.955 billion in October and N1,088.783 trillion in November as the amount that accrued to the federation’s account.