The International Monetary Fund (IMF) on Tuesday approved $3.4 billion loan facility for Nigeria to aid in alleviating the economic impact of Covid-19. This was announced in a tweet by the IMF.
Kristalina Georgieva, Managing Director of the International Monetary Fund in tweet said the approved fund “will help Nigeria free up more resources to protect lives and livelihoods”.
This is the largest IMF emergency financing that has been approved to date. Recall that Investogist reported on Monday that IMF will make a decision on Nigeria’s loan request on Tuesday 28th April.
The IMF Executive Board today approved US$3.4 billion to help #Nigeria address the severe economic impact of the #COVID19 pandemic and the sharp fall of oil prices. https://t.co/BmFoajYR6q #IMFAfrica pic.twitter.com/XIRYgS2CGC
— IMF (@IMFNews) April 28, 2020
This is coming as the Nigerian senate approved the FG’s request to borrow N850 billion from the local capital market. According to President Mohammadu Buahari, the N850 billion loan is required to replace the previously approved external loans as the borrowing conditions in the international capital market is not conducive for the country.
Recall that earlier this year the senate approved $22.7 billion to be borrowed externally. Nigeria is seeking about $6.9 billion facility from World bank, IMF and African Development.
Nigeria government revenue has been hardly hit by the declining oil prices which is the governments main source of revenue as well foreign exchange. The crash in oil price is due to the slump in demand as a result of Coronavirus Pandemic.