Nigeria Rakes in N1.36tn in Six Months from Exchange Rate Gains

Nigeria recorded a N1.36 trillion surge in revenue within six months following the unification of the Nigerian Naira.

The increase was documented in the Federation Account Allocation Committee’s latest report.

The report revealed that the foreign exchange differential rose from N0.639 billion in June to a substantial N364.87 billion by November.

This financial boon follows the unification of the country’s exchange rate, which presently stands at N825/$, compared to its closing rate of N461.50/$1 in 2022.

The Federation Account Allocation Committee distributed the accrued revenue among the three tiers of government with the federal government securing N625.77 billion from the exchange difference revenue.

State governments received a share of N317.36 billion while local governments obtained N244.66 billion.

Before the revenue is distributed among the three tiers of government, statutory deductions, including the 13% derivation and other charges, are applied.

Following these deductions, the Federal Government retains 52.68%, state governments receive 26.72%, and local governments get 20.60%, based on the current vertical allocation formula.

The financial boost has not only elevated the federal, state, and local governments but has also showcased the resilience of the Nigerian economy amid challenging economic conditions.

This windfall is expected to have a significant impact on various sectors and initiatives, reflecting a positive shift in the nation’s fiscal landscape.

Despite the uncertainties brought about by fluctuating currencies, depreciating values, and government policies encouraging domestic manufacturing, the financial surge is seen as a beacon of economic strength.

The proactive approach of the government in unifying the exchange rate has not only stabilized the market but has also positioned Nigeria for potential growth in the coming years.