The devaluation of the Nigerian naira in 2023 resulted in significant foreign exchange gains for the Nigeria Identification for Development (ID4D) project, as revealed by the World Bank’s recently released audited financial statement. The project, aimed at registering all Nigerians into the National Identification Number (NIN) system, reported a gain of N8.6 billion due to the weakening currency.
The World Bank’s 2023 financial statement, a 21-page document obtained by The PUNCH, detailed the financial aspects of the ID4D project, which was launched in 2020 with a budget of $430 million. The project is funded by the International Development Association, the French Development Agency, and the European Investment Bank, with funds being disbursed in multiple installments since December 2021.
According to the report, euro and dollar-denominated accounts managed by the Central Bank of Nigeria (CBN) and the National Identity Management Commission (NIMC) facilitated the implementation of project activities. During the period ending December 31, 2023, these accounts received $2.538 million and €3.03 million, respectively. The funds were then converted to naira through the CBN Autonomous Foreign Exchange Market and deposited into NIMC’s naira accounts for the Project Implementation Unit.
“During the period, the project’s transactions were carried out in local currency. A foreign exchange gain of N8,607,679,554.68 is recognised,” the report stated.
The report highlighted the significant rise in exchange rates, with the dollar increasing from N448.05 at the beginning of 2023 to N898.8 by year-end, and the euro rising from N478.3 to N993.9 over the same period. This devaluation boosted NIMC’s funding, providing additional resources to complete several outstanding project tasks and improve infrastructure and efficiency.
As of June 2024, the project’s disbursement rate was 37.37 percent, with $160.7 million of the $430 million budget utilized. To ensure full disbursement and achieve project goals, the World Bank recently announced a restructuring and extension of the project to 2026, originally set to conclude on June 30, 2024. This extension was necessary to address the project’s slow progress, including the issuance of 148 million NINs by June 2024, a target not yet met.
By May 2024, the number of issued NINs had risen to 107.34 million, according to NIMC Director-General, Abisoye Coker-Odusote. The World Bank’s July project restructuring document indicated that Nigeria had not fulfilled a critical condition for additional funding disbursement—amending the NIMC Act to establish an inclusive and non-discriminatory legal framework.
In response, the Nigerian Senate advanced a bill to repeal the National Identity Management Commission Act of 2007. Introduced by Deputy Senate President Barau Jibrin, the proposed legislation aims to enhance the efficiency and inclusivity of Nigeria’s identity management system by aligning it with global best practices and updating existing regulations.
The World Bank’s support and the restructuring of the ID4D project underscore the importance of robust identity management for Nigeria’s socio-economic development. With increased funding from the devaluation windfall, the project is better positioned to achieve its ambitious goals, benefiting millions of Nigerians in the process.
