The Federation Allocation Account Committee (FAAC) distributed N2.517 trillion in exchange rate gains among the three tiers of government—federal, state, and local government councils—in 2023, as revealed in the FAAC report spanning January to December of that year.
During this period, the federation received a total of N2.836 trillion, out of which N318.29 billion was deducted from the non-oil excess account, resulting in the net amount of N2.517 trillion.
Of this sum, the federal government received N1.211 trillion, while the 36 states shared N614.49 billion, and the Local Government Areas (LGAs) received N473.92 billion.
Additionally, eight states known for producing mineral resources like oil—Akwa Ibom, Delta, Rivers, Bayelsa, Ondo, Edo, Imo, and Abia—received N217.38 billion as 13 percent derivation.
The FAAC allocations from January to April did not include any foreign exchange (FX) gains, but from May to December, the federation recorded the reported N2.836 trillion, with the highest gain of approximately N639.39 billion occurring in May.
This period of consistent FX gains aligns closely with the Central Bank of Nigeria’s move to partially float the forex market, unifying it, as analysts described it.
The FAAC report for the 12-month period also detailed FX differential/equalization payments for February, April, and July, totaling N246.31 billion—N120 billion for February, N70 billion for April, and N56.31 billion for July.
Notably, the Naira was floated by the Central Bank of Nigeria on June 14, leading to a significant depreciation to N708 per US dollar by June 21 from N464.5 in May.
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