Naira Depreciation Benefiting Nigeria’s Budget – Senator Ndume

Senator Ali Ndume has emphasized that the federal government is witnessing a positive impact from the naira depreciation against the dollar, as it leads to increased revenue to support the 2024 budget. Highlighting the budget, which was presented by President Bola Ahmed Tinubu in November, Ndume pointed out that it heavily relies on dollar income due to revenue generated from crude oil exports, priced in dollars.

During an interview with Channels Television, Senator Ndume explained that as the value of the dollar rises, the government gains more naira for its expenditures, which are predominantly in naira. With Nigeria‘s primary export being crude oil, which remains in high demand globally, the country stands to benefit from the current exchange rate between the dollar and naira.

Senator Ndume expressed, ‘This budget is a ‘dollarised’ one, especially in terms of income. Our revenue is obtained in dollars, while our expenditures are in naira. Therefore, as the dollar strengthens, our naira spending power increases proportionally, ultimately benefiting our budget allocation.’ He further added, ‘The depreciation of the naira against the dollar may seem concerning, but given that our major revenue comes from dollar-denominated sources, it aligns with the current exchange rate, which could mean additional funds for our budget requirements.’