The naira came under intense pressure yesterday, leading to a significant depreciation as it fell to N990 to a dollar at the parallel market segment of the foreign exchange market, compared to the N950 to a dollar it traded the previous day. On the other hand, on the official Investors and Exporters’ (I&E) FX Window, the nation currency appreciated marginally to N771/$1, compared to N777/$1 from the previous day. The weakening of the naira to a record low took place on a day the Chairman, Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Mohammed Bello Shehu, yesterday disclosed that about N5.24 trillion accrued into the federation account between January and June 2023.
However, with the parallel market at N990/$1 and the official I&E window closing at N771, the gap between the official and parallel market has widened to N219 THISDAY spoke with some currency dealers in Lagos State, who revealed that the demand for the greenback seen yesterday was unprecedented, just as they attributed the development to speculative demand. Mr. Ibrahim Salisu, while speaking in an interview with THISDAY, said: “Today started off normal but around 11:30 am till evening, we don’t know what may be responsible but dollar became scarce.
I’m unable to find even $2000 as we speak.” Another parallel market operator who spoke with THISDAY in Lagos, who pleaded to remain anonymous, also confirmed the speculative demand observed yesterday. On the I&E window yesterday, the total turnover was $64.36 million compared to the daily volume of $71.01 million exchanged the previous day, as the supply of the greenback continued to wane. Also, the highest spot rate of the day was pegged at N799.9/$1 while its lowest spot was exchanged at N475/$1. Meanwhile, Shehu, yesterday disclosed that about N5.24 trillion accrued into the federation account between January and June 2023. He said out of the gross revenue inflows, the Nigerian National Petroleum Company (NNPCL) JV Petroleum Profit Tax (PPT) amounted to N627.30 billion, which was captured and recorded by the Federation Account Allocation Committee (FIRS), but utilised by the NNPCL for other FGN obligations.
Shehu, explained that the figures were captured in the monthly report to the Federation Account Allocation Committee (FAAC) by the Central Bank of Nigeria (CBN) under the CBN Federation Account Component Statement. He, however, noted that the NNPCL did not remit any amount into the federation account during the period either as profit revenue or other revenues as contained in the Petroleum Industry Act (PIA) 2021, as its revenue performance could not be assessed because neither its revenue target was disclosed nor its revenue remittance to the federation account was provided. A source however told THISDAY yesterday night that NNPCL’s none remittance to federation account is essentially due to subsidy payment. “It had to net off the subsidy on importation of pms, since it was compelled to sell at far below cost price.” Nonetheless, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted N823.51 billion while the FIRS recorded a gross collection of N3.65 trillion but remitted N3.02 trillion, retaining the difference as the cost of collection during the review period.