IMF Disburses $3.4bn Emergency Loan To Nigeria
International Monetary Fund (IMF) has disbursed $3.4bn emergency financial assistance to Nigeria to support the country’s covid-19 fight.
Managing Director of IMF, Kristalina Georgieva, made this known to CNBC Africa on Tuesday, saying the $3.4bn had been credited to the account of the Central Bank of Nigeria (CBN).
The Federal Government said it will use the funds, which was approved under the Rapid Financing Instrument by the Executive Board of the IMF on April 28, to address challenges arising from the economic impact of the COVID -19 in the country.
Georgieva stressed the need for transparency and accountability in the management of the funds.
She explained that the conditions for the loan are quite favourable, noting that the repayment period is five years, with up to two and a half years grace period and the interest on the loan is 1 %.
The Federal Government had assured that it will publicise all disbursements from the funds, and there are plans to conduct an independent audit of all emergency expenditure at the end of the pandemic.
The IMF director noted that there was need for all receivers of the emergency fund in Nigeria to keep receipts of expenditure.
The government also agreed to allow the IMF to conduct a due diligence exercise on the CBN, in line with the Fund’s safeguards assessment program.
Georgieva reportedly explained that Nigeria has met and exceeded the safeguards for the disbursement of the funds.
According to her, the money was sent to the CBN’s account in dollars, after which it would be converted to Naira.
Georgieva, in the same vein, said IMF will continue to support Nigeria and other member countries.
We have put in place policy tracking action, and we are seeing progress each country is making. The IMF will continue to support countries and shield them from catastrophic implications of the COVID-19 crisis.
It would be recalled that the board of the International Monetary Fund (IMF) recently approved the sum of $3.4 billion to support Nigeria’s COVID-19 fight.
The emergency financial assistance to Nigeria is the highest so far to any member country.