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Uche Usim, Abuja
The International Monetary Fund (IMF) on Tuesday acknowledged receipt of Nigeria’s intention to drawdown the $34 billion savings domiciled with the global financial institution under the Fund’s Rapid Financing Instrument (RFI).
Ms. Kristalina Georgieva, Managing Director of the IMF in a statement said Nigeria’s economy was 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.
“To support these efforts, Nigeria’s government has requested financial assistance under the Fund’s Rapid Financing Instrument (RFI). This emergency financing would allow the government to address additional and urgent balance of payments needs and support policies that would make it possible to direct funds for priority health expenditures and protect the most vulnerable people and firms. 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.”
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed on Monday disclosed that Nigeria seeks to pool over $7.05 billion from contributions and loans to fight the rampaging pestilence. Using the official dollar rate of N380/$1, the money translates to N2.679 trillion.
Also anticipated is an undisclosed amount of money in accruals from the Nigerian Liquefied Natural Gas (NLNG), among others.
The breakdown of the fund shows that $3.4 billion will come from Nigeria’s contributions (savings) to the International Monetary Fund (IMF), while $2.5 billion will be a loan from the World Bank. Again, $1 billion loan is expected from Africa Development Bank (AfDB) while $150 million would come from the stabilization fund domiciled with the Nigerian Sovereign Investment Authority (NSIA).
The N2.679 trillion being sourced is different from the N500 billion intervention package sourced locally from special accounts that has already been announced by President Muhammadu Buhari.
