COVID-19: IMF ‘ll Respond To Nigeria’s $3.4bn Request ― MD

BY COBHAM NSA, ABUJA – The International Monetary Fund (IMF) is working round the clock to speedily sort out Nigeria’s $3.4 billion facility request for managing the shocks from COVID-19 pandemic and dwindling global oil prices.

Managing Director of the Fund, Ms Kristalina Georgieva, who dropped the hints in a statement on Tuesday evening, said the IMF team is already preparing a proposal to present before the Executive Board for approval.

Georgieva said in giving serious consideration to the request, the IMF is conscious that; “Nigeria’s economy is being threatened by the twin shocks of the COVID-19 pandemic and the associated sharp fall in international oil prices.”

According to her, “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 (NCDC) 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).”

A statement released by the Fund’s Media Relations and Press Officer, Lucie Mboto Fouda further quoted the IMF boss as saying that; “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 statement assured

Nigeria’s Minister of Finance, Budget and National Planning, Mrs Zainab Shamsuna Ahmed had on Monday, April 6, 2020 disclosed that Nigeria is seeking financial succour from international development partners, including the IMF, to tackle the current coronavirus pandemic and its attendant effects on the country’s economy.

Speaking at a Ministerial media briefing on Fiscal Stimulus measures in response to the COVID-19 pandemic and oil price fiscal shock in Abuja, Mrs Ahmed said; “We have also applied for funding from the International Monetary Fund’s COVID-19 Rapid Credit Facility to draw from our existing holdings with the World Bank Group/International Monetary Fund.”

Explaining that the “loan will not be tied to any conditionalities”, the Minister said; “However, it is important to clarify that Nigeria does not intend to negotiate or enter into a formal programme with the International Monetary Fund, at this time, or in the foreseeable future.”