The devaluation of the Naira has resulted in a significant forex gain of N8.6 billion for Nigeria’s Identification for Development (ID4D) project, according to the World Bank’s recently released 2023 audited financial statement.
The $430 million ID4D project, initiated in 2020, is funded by the International Development Association (IDA), the French Development Agency (AFD), and the European Investment Bank (EIB). It aims to enrol all Nigerians for the National Identification Number (NIN).
Forex Gain Details
The financial statement reveals that funds received in US dollars and Euros were translated into Nigerian Naira (NGN) at the prevailing exchange rates. The report shows that at the beginning of 2023, one US dollar was exchanged for N448.05, and one Euro was exchanged for N478.3. By year-end, the exchange rates had dropped to N898.8 for the dollar and N993.9 for the Euro. This devaluation led to a forex gain of N8.6 billion for the project.
Impact on the Project
The devaluation has provided additional funds for various aspects of the ID4D project, including:
- Procurement of power backup systems
- Improvement of telecommunication links
- Procurement of a Computer Emergency Response Team (CERT) and Security Operations Center (SOC)
- Upgrading the data recovery centre (DRC)
- Procurement of contact center and Customer Relationship Management (CRM) solutions
As of June 2024, the project’s disbursement rate was 37.37%, with only about $160.7 million of the $430 million budgeted amount released. To address missed targets, the World Bank has announced the restructuring and extension of the project until 2026.
NIMC Amendment Bill and Further Disbursements
The World Bank’s restructuring document highlights that one condition for additional disbursements is the amendment of the NIMC Act to foster a more inclusive and non-discriminatory legal framework. The Nigerian National Assembly has begun this process to enhance the ID4D project’s effectiveness.
The NIMC Amendment Bill seeks to:
- Expand the scope of registrable persons
- Improve the ID system’s inclusivity
- Enhance national security and service delivery
- Promote financial inclusion
Project Goals and Current Status
The ID4D project, approved in 2020, targets increasing the number of Nigerians with a national ID number to facilitate access to digital services. The original closure date was set for June 30, 2024, but the project has been extended to 2026 due to missed targets. As of April 2024, 107.3 million Nigerians had been issued NIN. The revised targets include issuing NIN to 148 million Nigerians by 2024, with additional specific goals for female Nigerians and children under 16.
The project also aims to develop pro-poor public and private services, enhance rural NIN enrolments, and train government personnel in best practices for ID management, including privacy and data protection.
