.jpg "International Bodies IMF And Germany Approves Nigeria $3.5 Billion Capital")
The International Monetary Fund (IMF) on Tuesday, April, 28 approved Nigeria’s $3.4 billion emergency loan request to equip the country with the necessary assistance in battling the impact of the coronavirus (COVID-19) pandemic. Nigeria, which is to pay the loan within five years, is receiving the largest allocation yet by the IMF to an African country’s loan bid to contain the pandemic.
The country hit by crashing oil prices and lockdowns requested the amount, which is the total of its existing holding with the IMF, under the Rapid Financing Instrument, which offers funding without the strings of a full programme.
It is postulated that without the loan, Nigeria’s economy could plummet drastically, as the collapse of the price of crude, which makes up more than half of government revenues and 90 per cent of exports, has made it difficult to finance the 2020 budget.
The government of Germany has also granted the country a debt relief to the tune of €22.4 million (N8.9bn) as part of its own contribution to the country’s COVID-19 fight. Germany further announced an additional donation of €5.5 million (2.2bn Naira) to assist Nigeria on its Twitter handle, @GERinNigeria, on Tuesday.
It added that it is providing €5.5 million this time to support vulnerable people in Nigeria’s North-Eastern states of Borno, Adamawa, and Yobe.
As at April 15, 2020, up to one hundred different countries had approached the IMF for similar support under its rapid financing instrument, in order to ameliorate crisis response for emerging markets and assist developing countries to lessen the impact of the pandemic.
