Ndume Claims Tinubu Submitted a Budget in Dollars, Alleges Federal Government Gains from Dollar/Naira Exchange Rate Increase – Political Discussions on Nairaland

Senator Ali Ndume has asserted that the depreciation of the naira against the dollar is not causing losses for the federal government; rather, it is resulting in increased revenue to support the 2024 budget. He clarified that the budget, presented by President Bola Ahmed Tinubu in November, is essentially a ‘dollarized’ budget in terms of income. The majority of the government’s revenue is derived from crude oil exports, which are priced in dollars.

In an interview with Channels Television, Ndume pointed out that as the value of the dollar rises, the government gains more naira for its expenditures, which are denominated in naira. Emphasizing the continued high global demand for Nigeria’s major product, crude oil, he expressed confidence that the country stands to benefit from the prevailing dollar-to-naira exchange rate.

Ndume highlighted the unique nature of the budget, stating, “Don’t forget that this budget is a ‘dollarized’ 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.”

He further explained, “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.”