Senator Ali Ndume asserted that the depreciation of the naira against the dollar is not causing losses to the federal government; rather, it is yielding increased revenue to finance the 2024 budget.
Speaking on Channels TV, Ndume emphasized that the budget presented by President Bola Ahmed Tinubu in November 2023 is predominantly dependent on dollar-denominated income, given that a significant portion of the government’s revenue is derived from crude oil exports priced in dollars. He highlighted that as the value of the dollar rises, the government receives more naira for its expenditure, which is primarily denominated in naira.
Ndume pointed out that despite the fall in the value of the naira against the dollar, Nigeria’s main export, crude oil, remains in high demand globally, ensuring the country benefits from the current dollar-to-naira exchange rate.
He elaborated, “Considering that our revenue is mainly in dollars while our expenses are in naira, the current exchange rate implies that any dollar we earn is valued according to the prevailing exchange rate. Hence, upon thorough analysis, it may indicate that, overall, we have more funds to allocate to our budget. In essence, Nigeria is potentially gaining from the increase in the dollar-to-naira exchange rate.”
