Exchange rate unification increases N321bn June 2023— Exchange rate unification increases N321bn June 2023— FAAC

…FAAC records revenue growth

By Sodiq Adelakun

In the recent communique from the Federation Account Allocation Committee, the unification of the country’s exchange rate has significantly increased the revenue from exchange difference.

According to the communique, Exchange Difference revenue was N320.89billion in June 2023, which would be shared in July 2023.

This was far higher than the N0.64bn recorded as May 2023 revenue for sharing in June 2023.

Providing a breakdown on how the accrued revenue was shared among the three tiers of government, the communique read, “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.”

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 nation’s 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/$.