A communique released by the Federation Account Allocation Committee (FAAC) of Nigeria has revealed that the unification of the exchange rate has notably increased revenue from Exchange Difference.
An Exchange Difference is a difference that results from translating a given number of units of one currency into another currency exchange rates.
The communique stated that the Exchange Difference revenue which was N320.89bn in June 2023, would be shared in July 2023.
The communique showed that the Exchange Difference revenue figure for June was considerably higher than the N0.64bn recorded as May 2023 revenue for sharing in June 2023.
According to the communique, the breakdown of the sharing of the accrued revenue among the three tiers of government showed that, “From the N320.89bn Exchange Difference revenue, the Federal Government received N156.16bn; the State Governments received N79.20bn; the Local Government Councils received N61.06bn while N24.47bn was shared to the relevant states as 13 percent mineral revenue.”
It will be recalled that about two weeks after President Bola Tinubu promised to unify the nation’s multiple exchange rates, the Central Bank of Nigeria (CBN) decided to float the naira at the Investors and Exporters Window.
After the implementation of this policy, the nation’s naira has been fluctuating and dangling at N750 and N820/US dollar.