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The devaluation of Nigeria’s naira resulted in a foreign exchange gain of N8.6 billion for the National Identification for Development (ID4D) project in 2023, according to the World Bank’s recently released audited financial statement.
The 21-page document, obtained by The PUNCH, reveals that the ID4D project, which was launched in 2020 with a budget of $430 million, benefited significantly from the naira’s devaluation. The project aims to register all Nigerians under the National Identification Number (NIN) system.
Funded by the International Development Association, French Development Agency, and European Investment Bank, the ID4D project has been receiving financial support in multiple installments since December 2021, with more disbursements pending.
The report highlights that funds from international donors were received in euro and dollar-denominated accounts managed by the Central Bank of Nigeria (CBN) and the National Identity Management Commission (NIMC). During the period ending December 31, 2023, the CBN received $2.538 million, while NIMC received €3.03 million.
These funds were converted to naira through the CBN Autonomous Foreign Exchange Market and deposited into NIMC’s naira drawdown accounts. The conversion process resulted in a foreign exchange gain of N8,607,679,554.68.
The financial report noted that the exchange rate for the dollar increased from N448.05 at the start of the year to N898.8 by year-end. Similarly, the euro exchange rate rose from N478.3 to N993.9. The current exchange rates stand at N1,600/$1 and N1,750/€.
This devaluation has positively impacted NIMC’s funding, allowing the project to complete several key tasks and enhance its infrastructure and efficiency.
As of June 2024, the project’s disbursement rate was at 37.37 percent, with only $160.7 million of the $430 million budget utilized. To address this and meet project goals, the World Bank has announced a restructuring and extension of the project until 2026, extending beyond the original end date of June 30, 2024.
This extension comes amid potential threats from the French Development Agency and the European Investment Bank, who have warned they might withdraw their funding if the World Bank ceases to be the project’s implementing body.
Nigeria has faced difficulties in meeting project targets, including the issuance of 148 million NINs by June 2024. As of May, the number of NINs issued stood at 107.34 million, according to NIMC Director-General Abisoye Coker-Odusote.
The World Bank’s July restructuring document revealed that Nigeria has yet to fulfill a key condition for additional funding disbursement. Specifically, the Nigerian government must amend the NIMC Act to establish a more inclusive and non-discriminatory legal framework, a requirement still pending.
The Nigerian Senate has advanced a bill to repeal the National Identity Management Commission Act of 2007, which is currently at the second reading stage. Introduced by Deputy Senate President Barau Jibrin, the proposed legislation aims to enhance the efficiency and inclusivity of Nigeria’s identity management system by aligning with global best practices and updating existing regulations.
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