The devaluation of the Naira has resulted in a forex gain of N8.6 billion for the Nigeria Identification for Development (ID4D) project. This initiative, spearheaded by international financiers led by the World Bank, aims to enroll all Nigerians for the National Identification Number (NIN).
The World Bank disclosed this information in the project’s 2023 audited financial statement, which was just released.
Launched in 2020, the $430 million ID4D project is co-funded by the International Development Association (IDA), the French Development Agency (AFD), and the European Investment Bank (EIB). According to the report, funds from these financiers, received in US dollars or Euros, are converted into Nigerian Naira upon withdrawal at the prevailing exchange rate based on the CBN Autonomous Foreign Exchange Market (AFEM).
The project’s USD and EURO-denominated accounts, managed by the National Identity Management Commission (NIMC) and the Central Bank of Nigeria (CBN), received a total of $2,538.92 and €3.03 million in the reviewed year.
The report indicated that the exchange rate of one dollar increased from N448.05 at the beginning of the year to N898.8 by the end, while one Euro rose from N478.3 in January 2023 to N993.9 by year-end. This devaluation of the Naira led to a forex gain of N8.6 billion.
“During the period, the Project’s transactions were carried out in local currency (NGN). Foreign Exchange gain of N8,607,679,554.68 is recognized,” the report stated.
With the Naira now trading at approximately N1,600 per USD and N1,750 per Euro, NIMC will have increased funds to address several pending project components, including power backup systems, improved telecommunication links, procurement of a Computer Emergency Response Team (CERT) and Security Operations Center (SOC), upgrading the data recovery center (DRC), and acquiring contact center and Customer Relationship Management (CRM) solutions.
The World Bank reported that the project’s disbursement rate was 37.37% as of June 2024, meaning only about $160.7 million of the $430 million budgeted has been released.
To ensure full disbursement and the project’s objectives are met, the World Bank recently announced the restructuring and extension of the project, which was initially set to close on June 30, 2024.
Further disbursements hinge on the NIMC Amendment Bill
The World Bank noted that Nigeria has yet to meet one final condition for further fund disbursement for the project’s implementation: amending the NIMC Act to ensure an inclusive and non-discriminatory legal and regulatory framework.
However, the NIMC stated last week that the Nigerian National Assembly has begun the process of repealing and enacting the NIMC Act No. 23. The NIMC Amendment Bill aims to enhance the efficacy and inclusivity of the Identity Management System.
“The amendments seek to fortify the foundational framework of the NIMC and its operations by expanding the scope of registrable persons,” NIMC said in a statement signed by its Head of Corporate Communications, Kayode Adegoke.
The ID4D project, approved by the Board of IDA in 2020, aims to increase the number of people with a national ID number issued by NIMC to facilitate easy access to digital services in Nigeria.
Originally planned to conclude on June 30, 2024, the project has missed several targets, leading to its restructuring and extension to 2026. As of April 2024, only 107.3 million Nigerians had been issued NINs.
Other project targets include issuing NINs to 148 million Nigerians by 2024, with specific goals for female and child enrollments, and developing pro-poor functional public and private services using the foundational ID system for authentication and service delivery. Additionally, NIN enrollments in rural areas and training government personnel in best practices for legal and regulatory environments were also expected by June 2024.
Credit: Nairametrics (Text Excluding Headline)
