By MILCAH TANIMU
The devaluation of the Nigerian Naira in 2023 has led to a significant forex gain of N8.6 billion for the Nigeria Identification for Development (ID4D) project. This project, primarily funded by international financiers including the World Bank, aims to enroll all Nigerians for the National Identification Number (NIN).
According to the project’s 2023 audited financial statement, the ID4D project, which began in 2020 with a $430 million budget, is funded by the International Development Association (IDA), the French Development Agency (AFD), and the European Investment Bank (EIB). The funds received in USD and Euro are converted to Nigerian Naira at the prevailing exchange rates.
Financial Gains from Currency Devaluation
The financial report revealed that in 2023, the National Identity Management Commission (NIMC) and the Central Bank of Nigeria (CBN) received $2,538.92 and €3.03 million. The significant devaluation of the Naira, from N448.05 to N898.8 per USD and from N478.3 to N993.9 per Euro over the year, resulted in a forex gain of N8.6 billion.
This increase in funds will enable NIMC to address several key aspects of the project, such as enhancing telecommunication links, upgrading the data recovery center, and procuring power backup systems, a Computer Emergency Response Team (CERT), and Security Operations Center (SOC).
Progress and Challenges
Despite the forex gain, the ID4D project’s disbursement rate was only 37.37% as of June 2024, with approximately $160.7 million out of the $430 million budgeted being released. To expedite progress, the World Bank announced a restructuring and extension of the project’s deadline to 2026.
One crucial condition for further disbursements is the amendment of the NIMC Act to ensure an inclusive and non-discriminatory legal and regulatory framework. The Nigerian National Assembly has commenced the process of repealing and enacting the NIMC Act No. 23 to enhance the system’s efficacy and inclusivity.
Future Targets
The ID4D project seeks to increase the number of Nigerians with a national ID number, aiming for 148 million NINs by 2024, including 65 million for women and 50 million for children under 16. By April 2024, only 107.3 million Nigerians had been issued NINs. The project also aims to improve public and private services, NIN enrollments in rural areas, and train government personnel in best practices for foundational ID systems.
The NIMC emphasized the benefits of a comprehensive identification system, which include enhanced national security, efficient service delivery, and greater financial inclusion.
