[TOP STORY] EXCLUSIVE: FAAC adopts N436.38/$1 FX rate for June — despite naira float | TheCable
The Federation Account Allocation Committee adopted N436.38/$ as exchange rate for the calculation of the forex component ofThis was based on the advice of the Central Bank of Nigeria , a development that did not go down well with the states.Typically, federation revenues are shared by the three tiers of government the following month. As a result, May 2023 revenues were shared in June.
TheCable understands that the CBN is yet to explain why it opted for N436.38/$ but the states agreed that the revenue be shared all the same so as to be able to settle salaries ahead of the Eid al-Adha Muslim festival.By some calculation, using N436.38/$ instead of N765/$ led to a shortfall of over N200 billion.
There are no suggestions of fraud, although some state commissioners of finance suspect that the CBN wanted to offset some of its liabilities by using a lower FX rate for FAAC. The committee had said it shared a total sum of N786.161 billion to the federal government, states and local government areas for May 2023 — up fromfloating exchange rate — allowing supply and demand in the FX market determine the value of the naira — was implemented on June 14, 2023.
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