Exchange Rate Unification Boosts FOREX Revenue- FAAC

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The unification of the country’s exchange rate significantly increased revenue from foreign exchange to the tune pf N1.36tn in six months, the Federation Account Allocation Committee (FAAC) has said.

According to a communique of the Federation Account Allocation Committee the profits are against the backdrop of foreign exchange revaluation gains arising from depreciation of the naira which currently sells at N825/$, compared to its 2022 closing rate of N461.50/$1.

It said the difference increased from N0.639bn in June to N364.87bn in November.

Also, the government shared N320.89bn in July, N229.67bn in August, N186.81bn in September and N262.89 in the month of October.

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

Before an amount is shared between the three tiers of government, there are usually statutory deductions, such as 13 percent derivation and other charges and costs.

 

Punch/Hauwa Abu

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