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BREAKING: IMF to recommend $3.4b emergency funding for Nigeria

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Nine Russian companies to invest $500m in Nigeria

 

BY OUR EDITOR

The International Monetary Fund (IMF) says it would recommend a $3.4b emergency funding for Nigeria, according to a tweet Friday by @RaziaKhan, Chief Economist for Africa and the #MiddleEast, #StanChart Bank.

Reuters had reported on April 7, 2020 that the IMF was considering Nigeria’s request for $3.4 billion in emergency financing to combat the impact of the new coronavirus pandemic on Africa’s biggest economy.

IMF Managing Director Kristalina Georgieva said Nigeria’s economy was threatened by the twin shocks of the COVID-19 pandemic and a sharp fall in international oil prices, and the country had asked for funding to help protect the most vulnerable people and companies.

“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,” Georgieva had said in a statement.

Nigeria’s Minister of Finance, Zainab Ahmed, had on April 6 2020, said that the federal government had requested a total of $6.9 billion from the IMF and other multilateral lenders. It also sought the suspension of debt-servicing obligations for 2020 and 2021 from multilateral lenders.

READ: Harder days ahead as Nigeria’s COVID-19 cases rise, total lockdown looms

Georgieva said the Nigerian government was taking a number of measures aimed at containing the spread of the virus and its impact, and was working on an economic stimulus package that will help provide relief for affected households and businesses.

The emergency funding requested under the Fund’s Rapid Financing Instrument would allow the government to address additional and urgent balance of payments needs, and to direct funds to priority health expenditures, she added.

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