IMF Working On Nigeria’s $3.4bn Financial Request, Says Georgieva
The International Monetary Fund (IMF) Tuesday said it has commenced work on the request by Nigeria to collect her $3.4 billion contributions from the Fund for support of policies to cushion the effect of the COVID-19 pandemic.
Kristalina Georgieva, IMF Managing Director announced in a statement, saying the money will enable Nigeria address additional and urgent balance of payments needs and support policies that would make it possible for her to direct funds to priority health expenditures and protect the most vulnerable people and firms.
The Fund’s statement came on the heel of a similar announcement by the World Bank that it has released $82 million to Nigeria to enable her to strengthen the public health system.
Nigeria’s Finance Minister, Zainab Ahmed Monday disclosed of the government’s plan of an additional N2.67 trillion stimulus which will be pooled from the country’s $3.4 billion facilities with the IMF in addition to another $2.5 billion from the World Bank.
Another $1 billion fis to come from the African Development Bank (AfDB) while $150 million is expected from the Stabilisation Fund of the Nigeria Sovereign Investment Authority (NSIA).
“Nigeria has a contribution of $3.4 billion with the IMF and we are entitled to draw up to the whole of that $3.4 billion no less. We have in the first instance applied for that maximum amount, then in the process when we negotiate we might get the maximum amount or less.”
“This is the provision that the IMF has made for every member country that one can apply for between 50 to 100 percent of ones’ contribution to the IMF.”
“We are working hard to respond to this request so that a proposal can be considered by the IMF’s Executive Board as soon as possible,” said Georgieva who noted that the financial assistance is under the Fund’s Rapid Financing Instrument (RFI) to assist Nigeria that is currently pressured by the oil price plunge and the COVID-19 pandemic.
“Nigeria’s economy is being threatened by the twin shocks of the COVID-19 pandemic and the associated sharp fall in international oil prices. President Buhari’s administration is taking a number of measures aimed at containing the spread of the virus and its impact, including by swiftly releasing contingency funds to Nigeria’s Center for Disease Control and working on an economic stimulus package that will help provide relief for households and businesses impacted by the downturn”.
Ahmed, Nigerian Finance minister explained that the IMF program has no conditions attached and about 80 countries have also applied to draw from their contributions to the IMF.
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