APC Senator, Senator Ali Ndume has said the federal government is not losing out from the naira depreciation against the dollar, but rather gaining more revenue to…
According to Senator Ali Ndume, the federal government is actually gaining more revenue to support its 2024 budget rather than losing out on the naira’s depreciation against the dollar.
He clarified that the 2024 budget, which President Bola Ahmed Tinubu unveiled in November, is a “dollarized” budget in terms of income because the majority of the government’s income is derived from the export of dollars-priced crude oil.
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Speaking during an interview with Channels Television, Ndume noted that as the value of the dollar increased, the government would have more naira to spend on its expenditure, which is denominated in naira.
He added that Nigeria’s major product, crude oil is still in high demand in the global market, and that the country will benefit from the current dollar-to-naira exchange rate.
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He said, “Don’t forget that this budget is a ‘dollarised’ budget, especially in terms of the income. And when it comes to the terms of the expenditure, it’s in naira.
“So if we are getting our money in dollars and the value of the dollar is up, that means we will have more naira in terms of what we spend, because we are not spending in dollars, we are spending in naira, while we are getting our revenue in dollars.
“Truly, the value of naira against the dollar has fallen but we are selling our major product that we generate income in dollars. And that means any dollar we get now will also be valued at the current dollar-to-naira exchange rate.
“So if you do the analysis critically, it may mean if you balance it up, we may have more money to fund our budget. So technically, Tinubu’s government is even benefiting from the dollar-to-naira hike.”
