CBN’s Naira Unification Saves Nigeria N321bn in Government Revenue

• The decision to unify the naira has resulted to more money into the federation account
• In May, only N0.64 billion was recorded as revenue into the account
• The amount is distributed among the three tiers with federal government receiving the biggest share.

The Federation Account Allocation Committee has revealed that the revenue from currency differences has increased as a result of the country's exchange rate being unified.

Recall that Legit.ng reported that the Central Bank of Nigeria (CBN) announced changes in the foreign exchange market.

This suggested that the country's parallel and alternative forex markets were no longer in operation because all foreign exchange transactions were now conducted through the Investors and Exporters (I&E) window.

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An exchange difference is a variation that results from converting a specified quantity of one currency's units into another currency at various exchange rates.

The communiqué stated that the N320.89 billion in Exchange Difference earnings in June 2023 was distributed in July 2023, Punch reported.

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

Breakdown of revenue share

According to the statement, the amount was shared between the three tiers of government with the Local Government Councils receiving N61.06 billion while State Governments received N79.20 billion and the Federal Government received N156.16 billion.

Also, the sum of N24.47 billion was shared to the relevant states as 13 per cent mineral revenue.

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It stated:

From the N320.89 billion exchange difference revenue, the Federal Government received N156.16 billionn, the State Governments received N79.20 billion, the Local Government Councils received N61.06 billion and the sum of N24.47 billion was shared to the relevant states as 13 per cent mineral revenue.

Naira now approved for trade transaction payment in the UK

Earlier, Legit.ng reported that Nigeria's naira is now part of pre-approved currencies for financing transactions in the United Kingdom has announced.

The Export Finance Agency of the United Kingdom (UK) said the new development will make it possible for the country to offer financing for deals with Nigerian companies denominated in local money.

Source: Legit.ng