The International Monetary Fund (IMF) on Tuesday approved a $3.4 billion emergency funding requested by Nigeria, to help cushion the impact of COVID-19 on her economy.
The executive board of the fund gave the approval under the Rapid Financing Instrument to support the government’s efforts to address the devastating impact of COVID-19.
It is the single largest aid for any African country facing the pandemic. The Fund had earlier approved $1 billion for Ghana, Igbere TV reports.
On April 6, the Minister of Finance, Budget and National Planning, Zainab Ahmed, said at the launching of the N500 billion fiscal stimulus measures in response to the COVID-19 pandemic that the IMF request was part of a number options the country was exploring raise funds to salvage its economy.
The minister said the other options to mobilise financial support to the country’s economic stimulus fund included a $2.5 billion credit facility from the World Bank, and another $1 billion from the African Development Bank.
At the meeting of its executive board on Tuesday to consider Nigeria’s request, the IMF noted that the COVID-19 outbreak has magnified existing economic vulnerabilities, leading to a historic contraction in the economic growth of most countries, and to large extent their external and fiscal financing needs.
“Once the impact of the COVID-19 shock passes, the authorities’ commitment to medium-term macroeconomic stability remains crucial to support the recovery and ensure debt remains sustainable,” the board said.
The board said the approval of 100 per cent of Nigeria’s contribution to the Fund as emergency financial assistance was based on the country’s Special Drawing Rights under the Rapid Financing Instrument.
