A recent statement from the Federation Account Allocation Committee (FAAC) revealed that the country’s exchange rate unification has greatly raised the earnings from exchange difference.
The communiquƩ stated that the N320.89 billion in Exchange Difference earnings earned in June 2023 would be distributed in July 2023.
This was significantly more than the N0.64 billion recorded as revenue for sharing in May 2023.
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The communiquĆ© provided a summary of how the collected revenue was distributed among the three levels of government, reading, “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 and the sum of N24.47bn was shared to the relevant states as 13 per cent mineral revenue.ā
An exchange difference is a difference resulting from translating a given number of units of one currency into another currency at different exchange rates.
About two weeks after President Bola Tinubu promised to unify the nationās multiple exchange rates, the apex bank decided to float the naira at the Investors and Exporters forex window.
Since then, the naira had been rising and falling, hovering around N750/$ and N820/$.
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