Dollar-To-Naira Hike Is Good News For FG – Ali Ndume

Senator Ali Ndume has come out to say that the Federal Government is not losing out from the naira depreciation against the dollar.

He recently revealed that it is, rather, gaining more revenue to fund its 2024 budget, and Nigerians have been reacting.

According to him, the 2024 budget is actually a dollarised budget in terms of income, since most of the government’s revenue comes from crude oil exports, which are priced in dollars.

He added that as the value of the dollar increases, the government would have more naira to spend on its expenditure, which is denominated in naira.

His words, “Don’t forget that this budget is a ‘dollarised’ budget, especially in terms of 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, Nigeria is even benefiting from the dollar-to-naira hike.”

WOW.