- Senator Ali Ndume asserts that the naira’s depreciation against the dollar financially benefits the federal government
- Ndume explains that Nigeria’s budget relies heavily on dollar-denominated revenue, primarily from crude oil exports, aligning with expenditure in naira
Senator Ali Ndume has asserted that the federal government is not at a loss due to the depreciation of the naira against the dollar; rather, it stands to benefit financially to support its 2024 budget.
Ndume explained that the budget, presented by President Bola Ahmed Tinubu in November, relies heavily on dollar-denominated revenue, primarily from crude oil exports.
During an interview with Channels Television, Ndume clarified that as the dollar’s value rises, the government receives more naira revenue, which aligns with its expenditure denominated in naira.
Highlighting the continued demand for Nigeria’s major export, crude oil, in the global market, Ndume emphasized the potential gains from the current dollar-to-naira exchange rate.
He elaborated, “Considering that our revenue is generated in dollars, and the dollar’s value is increasing, we will have more naira to spend because our expenditure is in naira while our revenue is in dollars.”
Despite the decline in the naira’s value against the dollar, Ndume emphasized that Nigeria’s revenue-generating products are priced in dollars, implying that any dollar earned will be valued based on the prevailing exchange rate.
Ndume concluded, upon thorough analysis, that Nigeria could have more funds available to finance its budget. Thus, he asserted that, technically, Nigeria benefits from the increase in the dollar-to-naira exchange rate.