The Federal Government is a major beneficiary of the free-falling naira Chief Whip of the Senate, Ali Ndume, has claimed.
Ndume who was speaking during an interview on Channels TV argued that due to the fact that the Federal government budget is dollarized, it gains more by spending naira on its expenditures.
“Don’t forget that this budget is a ‘dollarized’ budget, especially in terms of income. And when it comes to the terms of the expenditure, it’s in naira.
“So if we are getting our money in dollars and the value of the dollar is up, that means we will have more naira in terms of what we spend because we are not spending in dollars, we are spending in naira, while we are getting our revenue in dollars.
“Truly, the value of naira against the dollar has fallen but we are selling our major product that generates income in dollars. And that means any dollar we get now will also be valued at the current dollar-to-naira exchange rate.
“So if you do the analysis critically, it may mean if you balance it up, we may have more money to fund our budget. So technically, Nigeria is even benefiting from the dollar-to-naira hike.”
Meanwhile, as at Thursday afternoon the naira continues its unstable nature in the forex trade with hourly fluctuations. It went for N1,605 in the official CBN window, while in the black market it traded at N1,705 and sell at N1,710.
