Skip to main content

Era Of Multiple Exchange Rates Coming To An End As Nigeria's Revenue Leaks

Era Of Multiple Exchange Rates Coming To An End As Nigeria's Revenue Leaks

The era of multiple exchange rates is coming to an end in Nigeria according to the Minister of Finance, Zainab Ahmed. For years, there have been talks about Nigeria adopting a unified multiple exchange rate, and now, the idea has been embraced by the Nigerian government.

In a Ministry of Finance document, Ahmed was said to have stated that Nigeria will unify the multiple exchange rates in order to generate more local currency from its dollar inflows. Ahmed said the rate will be managed in a sustainable way, Reuters reported. The new development comes at a period the country is having forex problems caused by the oil price crash and the economic fallout of the coronavirus pandemic in Nigeria.

The COVID-19 outbreak had hit global market, affecting demand for oil, leading to a crash in oil as demand declined. Nigeria had been limiting its dollar sales to the central bank which sells to commercial banks that later sell to the public only for goods or raw materials that are not produced or can't be found in Nigeria.

Nigeria Initiates Measures To Protect Weak Economy

The multiple exchange rate regime is being used by the Central Bank of Nigeria (CBN) to manage pressure on the naira. According to Ahmed, oil firms will be directed by the government to sell forex to the CBN rather than the Nigerian National Petroleum Corporation (NNPC). This is expected to help with the forex problem currently being faced within the country.

It was also reported that one of the measures to protect revenue from oil will include deregulation of petroleum prices. The document stated that over a period of 12 months, the policy will be implemented. The measures are expected to aid the weak revenue sources of the government.

Nigeria's Revenue Sources Leaking Heavily

Nigeria's revenue sources has been hit hard by the coronavirus pandemic following a shortfall in revenue from oil, Companies Income Tax, Value Added Tax, Nigeria Liquefied Natural Gas, mining and mineral. According to documents from the Budget Office of the Federation, Nigeria's federation account is bleeding significantly, with a revenue shortfall of about N1.01 trillion in the first three months of 2020.

According to the documents obtained by thewhistler.ng, the Federal Government generated about N950.55 billion compared to the projected revenue target of N1.96 trillion earmarked for the first quarter of this year. This represents about 52 per cent decline or N1.01 trillion shortfall.

Further breakdown of the revenue projection and actual earnings showed that revenue from oil suffered a 30 per cent decline, resenting a shortfall of N195.37 billion after generating N464.03 billion in the first three months of 2020, lesser than the projected revenue target of N659.4 billion.

Labels:

Comments

Post a Comment

Popular posts from this blog

N-Power: FG extends Batch C enrolment Aug 8

FG extends Batch C N-Power enrollment to August 8 Add caption The Federal Government says the enrolment for Batch C scheme of the N-Power Programme which started on June 26 will now close on August 8. Minister of Humanitarian Affairs, Disaster Management and Social Development, Sadiya Umar-Farouq, who disclosed this via  Twitter on Sunday night, said over 5 million applications have been received for the scheme. The Federal Government plans to enrol 400,000 applicants in the Batch C scheme. Batches A and B of the programme who are about to exit the programme held a rally at the National Assembly Complex last week, requesting FG to employ them as well as pay them a grant of N600,000 each. Providing an update on the development, the minister said on Sunday, “I received the news of a protest at the National Assembly by N-Power Batch A and B beneficiaries who presented a list of demands which we are reviewing and will address as practically possible. “Let me reiterate that th...
Post a Comment
Read more

FG SURVIVAL FUND TO COMMENCE REGISTRATION FEBRUARY 9TH

MSMEs SURVIVAL FUND TO COMMENCE REGISTRATION FOR GUARANTEED OFF-TAKE STIMULUS SCHEME & GENERAL MSME GRANT     100,000 Nigerians to benefit from one-off N50,000 MSME grant  The chairman of the Steering Committee of the MSMEs Survival Fund and guaranteed Off-take Stimulus Scheme and Honourable Minister of State, Federal Ministry of Industry, Trade and Investment, Amb. Mariam Y. Katagum, has announced the commencement of the Guaranteed Off-take Stimulus Scheme and the MSME Grant portal opening from February, 9th, 2021.  The Guaranteed Off-take Stimulus Scheme according to Amb. Katagum is aimed at protecting and sustaining the incomes of vulnerable Micro and Small Enterprises by guaranteeing the offtake of their products.   According to her, a total of 100,000 Micro and Small Enterprises are to benefit from the scheme.   The total target national number of beneficiaries is 100,000. The breakdown is as follows: Lagos, 3,880; Kano, 3,280; Abia, 3,080; while t...
Post a Comment
Read more

PRESIDENT BUHARI RECEIVES MADAGASCAN COVID-19 HERBAL “DRUG” FROM GUINEA BISSAU’S PRESIDENT EMBALO

PRESIDENT BUHARI RECEIVES MADAGASCAN COVID-19 HERBAL “DRUG” FROM GUINEA BISSAU’S PRESIDENT EMBALO President Muhammadu Buhari Saturday at the State House, Abuja, received the Madagascan native formulation against the Covid-19 pandemic, and reiterated that he will listen to science before allowing traditional or any new medicines to be administered on Nigerians. At an audience meeting with President Umaro Sissoco Embalo of Guinea Bissau who brought along with him the samples of the traditional medicine as shared to African nations by Madagascar, President Buhari said his position on all such herbal or traditional medicinal postulates had remained the same. “We have our institutions, systems and processes in the country. Any such formulations should be sent to them for verification. I will not put it to use without the endorsement of our institutions,” said the Nigerian President. On the main reason for his visit, President Embalo said having stabilized his country after the tus...
Post a Comment
Read more