The International Monetary Fund (IMF) is scheduled to meet on April 28 to decide on Nigeria’s request for $3.4 billion in emergency financing to combat the impact of the ongoing coronavirus pandemic on the African country’s economy.
According to Reuters, the international financing body’s announcing a date to take the request before the board is a sign the proposal was slated for approval.
Nigeria has requested for the emergency funding under the Fund’s Rapid Financing Instrument that offers funding without the strings of a full program. The Nigerian government has also requested another $3.5 billion in total from the World Bank and the African Development Bank. The country is currently reeling from the twin hits of the oil price collapse and the coronavirus outbreak.
Nigerian Finance Minister Zainab Ahmed said the government is seeking a total of $6.9 billion from the IMF and other multilateral lenders. The money would be used to address additional and urgent balance of payments needs, and to direct funds to priority health expenditures.
The loan, which is to be repaid in a maximum of five years, would be the largest allocation by the IMF to an African country to assist with the coronavirus pandemic. The lender approved a disbursement of about $1 billion to Ghana earlier this month.
The coronavirus outbreak is reducing demand for and prices of commodities coming from African countries, while domestic lockdowns in various countries have shuttered industries and trade.
Last week, the IMF Managing Director, Kristalina Georgieva said the institution will mobilize more than $18 billion to respond to more than 40 African countries who have requested assistance to battle the pandemic.
In related news, Nigeria Centre for Disease Control on Friday Confirmed 114 new cases of coronavirus in Nigeria, taking the toll to 1095. 80 of the cases were reported in Lagos, 30 in Gombe, 5 in FCT, 2 in Zamfara and Edo, while Ogun, Oyo, Kaduna and Sokoto recorded one each.
