The Federal Accounts Allocation Committee (FAAC) foreign exchange (FX) rate gain for the federal, state, and local governments was N2.52 trillion last year.
The sum was a portion of the N2.84 trillion gross foreign exchange gain realized for the year.
The FAAC report for the period of January through December 2023 is the source of the data.
The federation reportedly deducted N318.29 billion from the non-oil excess account for the period and earned N2.836 trillion as foreign exchange gain.
The states earned N614.49 billion from the N2.52 trillion, while the federal government received N1.211 trillion. The amount given to local governments was N473.92 billion.
During the period, states that produce mineral resources like oil earned N217.38 billion as a 13 percent derivation fund.
A detailed examination of the data shows that there was no foreign exchange gain (FX gain) in the FAAC allocation distributed across the federation’s component entities from January to April. Nonetheless, the federation recorded N2.84 trillion between May and December.
May was the largest gain from FX, with the federation’s account accruing almost N639.39 billion.
The Central Bank of Nigeria (CBN) harmonized the FX rates throughout the era of constant FX gain, a move that observers referred to as a partial float.
The Foreign Exchange differential/equalization payments for February, April, and July, totaling N246.31 billion, were also included in the FAAC report for the 12 months.
The FX differential/equalization was recorded at N70 billion for April, compared to N120 billion for February. The amount paid was N56.31 billion in July.
President Tinubu eliminated the gasoline subsidy, which had previously eaten up a sizable portion of government revenue when he took office in May. As part of its efforts to stabilize the market, the CBN also stated in June that the FX rates would be fixed during the President’s administration.
The government’s windfall foreign exchange gains contrast with the massive foreign exchange losses on the balance sheets of private sector businesses.
Due to the steep decline in the value of the naira during the year, foreign-owned subsidiaries that were trading on the local stock exchange claimed losses of N900 billion.
The businesses, which were from a variety of sectors, included Cadbury Nigeria, MTN, Airtel, Unilever Nigeria, International Breweries, and Nigerian Breweries.
