The value of the Nigerian Naira dropped, which helped the Nigeria Identification for Development (ID4D) project gain N8.6 billion. This project, backed by big international groups like the World Bank, wants all Nigerians to get their National Identification Number (NIN).
The World Bank told us about this in their 2023 financial report.
This project has $430 million and started in 2020. It gets money from the International Development Association, the French Development Agency, and the European Investment Bank.
The report shows that when money sent in US dollars or Euros is turned into Nigerian Naira, it is done based on the exchange rates set at the time the money is taken out.
Money Received
The financial report shows that the project, managed by the National Identity Management Commission (NIMC) and the Central Bank of Nigeria (CBN), got $2,538.92 and €3.03 million this year.
The report also says that at the start of the year, one dollar was worth N448.05, but by the end of the year, it was N898.8. One Euro was N478.3 in January 2023 and rose to N993.9 by the end of the year. This change in value led to a gain of N8.6 billion for the project.
“During the period, the Project’s transactions were carried out in local currency (NGN). Foreign Exchange gain of N8,607,679,554.68 is recognised,” the report stated.
What This Means
Now that one dollar is about N1,600 and one Euro is about N1,750, NIMC will have more money to complete parts of the project. These include buying power backup systems, improving telecommunications, getting security and emergency systems, upgrading the data center, and getting new customer service systems.
As of June 2024, only 37.37% of the money needed for the project has been given out. This is about $160.7 million out of the $430 million promised.
To make sure the project gets all the needed funds and meets its goals, the World Bank has extended its end date from June 30, 2024, to later years.
More Funds Possible with New NIMC Bill
The World Bank said in July that to get more money for the project, Nigeria must finish changing the NIMC Act. This new law aims to make the identification system fair and open to all people.
“One final disbursement condition which has yet to be met is the amendment of the NIMC Act to promote an inclusive and non-discriminatory legal and regulatory framework,” it said.
Last week, NIMC said the Nigerian National Assembly has started working on changing the NIMC law to make it better and more effective.
“The amendments seek to fortify the foundational framework of the NIMC and its operations by expanding the Scope of Registrable Persons.”
“The benefit to the country is a more comprehensive and inclusive identification system, which enhances national security, facilitates efficient service delivery and promotes financial inclusion,” NIMC said in a statement signed by its Head of Corporate Communications, Kayode Adegoke.
What You Should Know
The ID4D project, started by the Board of IDA in 2020, seeks to give more Nigerians a national ID number through the NIMC. This ID number helps Nigerians access digital services.
- The project was meant to end on June 30, 2024, but many goals were not met, so it was extended to 2026.
- By April 2024, only 107.3 million Nigerians had received their NIN.
- The World Bank wants 148 million Nigerians to get their NIN by 2024. They also want at least 65 million women and 50 million children under 16 to get their IDs by June 1, 2024.
- Other goals include using the ID system to help poor people and providing services, increasing enrollments in rural areas, and training government workers on best practices for ID, privacy, and data protection, all by June 2024.