The International Monetary Fund, IMF is expected to recommend the approval of $3.4 billion in emergency funding to Nigeria to assist the country deal with the effect of the COVID-19 epidemic on Nigeria’s economy.
The executive board of IMF is scheduled to meet this week, and would be recommending the approval of the loan which is scheduled to be repaid in a maximum of five years. This comes on the heels of a reduction in international demand for Nigeria’s commodities, as well as lockdowns within the country that have shuttered trade and industries.
IMF will consider Nigeria’s request for $3.4 billion on April 28, 2020. Nigeria requested the amount under the Rapid Financing Instrument, which offers funding without the strings of a full program.
Due to the global pandemic, Nigeria’s economy could shrink significantly due to the collapse of the price of crude, which makes up more than haft of government revenues and 90% of exports.
The International Monetary Fund, IMF will mobilize more than $18 billion to respond to more than 40 African countries who have requested assistance to battle the pandemic, Managing Director Kristalina Georgieva said last week.