Senator Ali Ndume has stated that the federal government is actually benefiting from the depreciation of the naira against the dollar, as it results in increased revenue to finance its 2024 budget.
He highlighted that since Nigeria’s income, particularly from crude oil exports, is predominantly in dollars, a rise in the value of the dollar means more naira for government expenditure, which is primarily denominated in naira.
Ndume emphasized that despite the fall in the value of the naira, Nigeria’s major product, crude oil, remains in high demand globally, ensuring continued benefits from the current exchange rate.
He concluded that upon careful analysis, the country stands to gain financially from the dollar-to-naira hike, as revenue in dollars translates to more naira at the prevailing exchange rate.
