Akwa-Ibom and Jigawa Spearhead States with Staggering $910 Million Forex Surge

In the span of the last three months, a remarkable financial narrative has unfolded across various states in Nigeria, as revealed by data extracted from the third-quarter budget implementation report spanning from July to September. This insightful information, now brought to light by Infostride News, unveils the significant foreign exchange revaluation profits amassed by no less than 13 state governments, collectively amounting to an impressive N71.59 billion.

The genesis of this extraordinary financial windfall can be traced to foreign exchange revaluation gains, a direct consequence of the depreciation of the Nigerian Naira. At the time of reporting, the Naira stands at a rate of N791/$, in stark contrast to its closing rate of N461.50/$1 in 2022. This divergence in exchange rates has given rise to substantial profits for the states, marking a notable economic development in the third quarter of the year.

This fiscal phenomenon can be contextualized further against the backdrop of a pivotal decision made by the Central Bank of Nigeria (CBN) on June 14, 2023. The CBN, in a directive to Deposit Money Banks, ordered the removal of the rate cap on the Naira at the official Investors and Exporters’ Window of the foreign exchange market. This strategic move aimed to facilitate the free float of the Naira against the dollar and other global currencies.

In its official communication, the CBN stated, “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.” This policy shift set the stage for the economic dynamics witnessed in the subsequent months, with states reaping substantial gains from foreign exchange revaluation.

Despite the comprehensive nature of this financial revelation, it is noteworthy that not all states have shared their earnings in the Q3 2023 report. Out of the 36 states in Nigeria, 23 sub-nationals, including Ekiti, Anambra, Rivers, Bayelsa, Benue, Cross Rivers, Delta, Edo, Gombe, Kaduna, Kano, Katsina, Kebbi, Kwara, Lagos, Niger, Ogun, Ondo, Oyo, Taraba, Yobe, Zamfara, and Sokoto, have yet to disclose their financial standings during this period.

Among the 13 states that did disclose their earnings, the disparities in profits were notable. Akwa-Ibom emerged at the forefront with the highest earning, a substantial N10.2 billion, followed closely by Jigawa at N7.23 billion and Imo at N6.26 billion. The list continued with Kogi (N5.92 billion), Nasarrawa (N5.75 billion), Plateau (N5.65 billion), Abia (N5.34 billion), Adamawa (N5.34 billion), Enugu (N5.1 billion), and Zamfara (N5.02 billion).

However, it is essential to recognize the variations in earnings, with Bauchi securing the lowest profit at N120 million, while Ebonyi and Osun received N4.79 billion and N4.89 billion, respectively. These disparities reflect the diverse economic landscapes and fiscal strategies employed by each state, contributing to the intricate financial tapestry of the nation.

Further investigation, as reported by Infostride News, reveals that a total of 14 states have collectively garnered N86.92 billion from forex earnings in the initial three quarters of the year. This broader perspective emphasizes the sustained financial impact of foreign exchange revaluation on states across Nigeria, underscoring the evolving economic landscape shaped by currency fluctuations and policy adjustments.

In conclusion, the financial revelations encapsulated in the third-quarter budget implementation report underscore the intricate interplay between currency dynamics, economic policies, and state-level fiscal outcomes. As states navigate the complexities of the current economic landscape, the influence of foreign exchange revaluation on their financial standing becomes a critical factor in shaping the trajectory of regional economies. Infostride News remains committed to providing comprehensive insights into the dynamic financial landscape, unraveling the stories that define the economic narrative of Nigeria and its constituent states.