The devaluation of Nigeria’s currency resulted in a foreign exchange gain of N8.6bn for the Nigeria Identification for Development (NIN) project, as per the recently disclosed 2023 audited financial statement by the World Bank.
NewsNow obtained an electronic copy of the 21-page report on Tuesday.
Launched in 2020 with a budget of $430 million, the ID4D project aims to enroll all Nigerians in the National Identification Number system.
Supported by the International Development Association, French Development Agency, and European Investment Bank, the initiative has been receiving funds in stages since December 2021, with more disbursements expected.
The financial statement indicated that accounts in euros and dollars, overseen by the Central Bank of Nigeria (CBN) and the National Identity Management Commission (NIMC), received funds from international backers.
During the period ending on December 31, 2023, NIMC received $2.538 million, while CBN received €3.03 million.
These accounts facilitated project activities by converting the funds to naira through the CBN Autonomous Foreign Exchange Market and depositing the equivalent amount into NIMC’s naira drawdown accounts for the Project Implementation Unit.
The report stated, “The project’s transactions were carried out in local currency during the period. A foreign exchange gain of N8,607,679,554.68 was recognized.”
The financial report revealed that the dollar exchange rate rose from N448.05 at the beginning of the year to N898.8 by year-end. Similarly, the euro exchange rate increased from N478.3 to N993.9 during the same period.
The naira devaluation has boosted NIMC’s funding, with exchange rates now set at N1,600/$1 and N1,750/€. This increased funding will help NIMC complete pending project tasks, ultimately fortifying the project’s infrastructure and enhancing its efficiency.
As of June 2024, the project’s disbursement rate stood at 37.37%, as reported by the Bretton Woods Institute, signifying that only $160.7 million of the $430 million budget has been utilized.
To achieve full disbursement and meet project objectives, the bank has recently announced a restructuring and extension of the project until 2026, originally planned to conclude on June 30, 2024.
This decision follows warnings from the French Development Agency and the European Investment Bank to withdraw funding if the World Bank ceases to oversee the project’s implementation.
Nigeria has encountered difficulties in meeting project targets, including the issuance of 148 million National Identification Numbers (NINs) by June 2024.
As of May, the number of NINs had risen to 107.34 million, according to NIMC Director-General, Abisoye Coker-Odusote.
In its July project restructuring document, the World Bank disclosed that Nigeria had not fulfilled a crucial condition for further funding disbursement.
Specifically, the Bank highlighted the need for the Nigerian government to amend the NIMC Act to establish an inclusive and non-discriminatory legal framework, a requirement that remains pending.
The Nigerian Senate has progressed with a bill to revoke the National Identity Management Commission Act of 2007, advancing it to the second reading stage last month.
Proposed by Deputy Senate President Barau Jibrin, the legislation aims to enhance the efficiency and inclusivity of the country’s identity management system by introducing comprehensive provisions aligning with global standards and updating existing regulations.