Emmanuel OchayiIn a financial revelation reshaping the economic landscape, Nigeria’s adoption of a unified exchange rate has led to a surge in foreign exchange gains, soaring to N1.36 trillion within six months.
The Federation Account Allocation Committee’s data uncovered this windfall, stemming largely from the foreign exchange revaluation gains sparked by the naira’s depreciation, now trading at N825/$ compared to its previous close of N461.50/$1 in 2022.
Join our WhatsApp ChannelThe report further delineates how this windfall was disbursed among the tiers of government.
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Following statutory deductions, the Federal Government received 52.68%, while state governments and local councils received 26.72% and 20.60%, respectively, based on the current vertical allocation formula.
However, specific breakdowns within the Federal Government’s share earmarked percentages for diverse developmental concerns, such as ecological issues, resource development, and stabilization funds.
What stands out prominently is the individual state gains from this surge, with 13 states recording significant foreign exchange revaluation profits.
Akwa Ibom led the pack with N10.2 billion, followed closely by Jigawa and Imo. Bauchi secured the smallest profit margin at N120 million, while other states like Ebonyi and Osun garnered amounts.
While a boon for state coffers, this financial upswing raises questions about the broader economic implications and the effective utilization of these unexpected gains in fostering sustainable development and economic growth across the nation.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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