Emmanuel OchayiIn a financial upturn that defied the odds, thirteen Nigerian states have raked in a sum of N71.59 billion in foreign exchange revaluation profits within just three months.
This revelation surfaced from the latest third-quarter budget implementation reports, showcasing a windfall amidst the Naira’s downward spiral against major global currencies.
“The Central Bank of Nigeria wishes to inform all authorized dealers and the general public of the following immediate changes to operations in the Nigerian Foreign Exchange Market: Abolishment of segmentation. All segments are now collapsed into the Investors and Exporters window,” stated the CBN in its directive on June 14, 2023.
Notably, these gains were fueled by the depreciation of the Naira, which now stands at N791 per dollar, compared to its N461.50/$1 rate at the close of 2022.
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The states, including Akwa-Ibom with the highest earnings at N10.2 billion, Jigawa at N7.23 billion, and Imo at N6.26 billion, seized this opportunity amid the fluctuating exchange rates.
However, the report revealed that 23 sub-national entities, including Ekiti, Anambra, Rivers, and others, are yet to disclose their earnings for the Q3 2023 period. This leaves a gap in the comprehensive understanding of the fiscal implications across the nation.
Interestingly, among the disclosed figures, Bauchi emerged with the lowest profit of N120 million, while Ebonyi received N4.79 billion and Osun obtained N4.89 billion, indicating a disparity in gains among the states.
This news comes amidst ongoing concerns about the Naira’s persistent devaluation and the economy’s reliance on forex earnings.
So far, 14 states have garnered a total of N86.92 billion from forex earnings across the initial three quarters of this year, further underlining the financial significance of these fluctuations in the currency market.
The impact of these unexpected profits on the states’ economies remains to be seen, especially considering the varying rates of earnings and the looming question of how the remaining states will fare in their forex revaluation gains as the fiscal year progresses.
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