The World Bank has revealed that Nigeria lost ₦13.2 trillion between 2021 and 2023 due to the management of foreign exchange.
This, in its latest report include ₦2 trillion in 2021, ₦6.2 trillion in 2022, and ₦5 trillion in 2023.
The dual exchange rate policy, which kept separate official and parallel market rates, caused these significant losses.
The report highlights that sectors like oil and customs were impacted, with ₦3.9 trillion in missed revenue from the non-oil sector.
“Quantifying the fiscal cost, through forgone revenue of multiple exchange rates: Prior to the full FX unification in February 2024, the presence of a parallel FX premium generated enormous fiscal costs, in the form of forgone revenues,” it read.
“This situation emerged because FX revenue inflows such as oil and customs revenues, as well as a portion of domestic VAT and CIT which are paid in FX were transferred to the treasury at the official exchange rate.”
The World Bank advises maintaining a unified exchange rate to stabilize the economy.
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