IMF approves $3.4 billion for Nigeria, largest emergency support so far

The executive board of the International Monetary Fund (IMF), has approved the sum of $3.4 billion as Rapid Financing Instrument (RFI) as fiscal support to Nigeria during this period of coronavirus pandemic.

The fund that was requested by Nigeria is to be used to mitigate the impact of the coronavirus pandemic on the Nigeria economy as the country grapples with dwindling government revenue and an economic crisis following the crash of crude oil prices globally.

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The IMF in its statement stated, ‘’The Executive Board of the International Monetary Fund (IMF) approved Nigeria’s request for emergency financial assistance of SDR2,454.5 million (US$3.4 billion, 100 per cent of quota) under the Rapid Financing Instrument (RFI) to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic.

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The IMF had earlier approved the disbursement of funds to some African countries in order to reduce the economic and financial impact of the COVID-19 pandemic.

Some of these countries include Morocco, Tunisia, Madagascar, Rwanda, Guinea, Gabon, Ghana and Senegal. Before the approval given to Nigeria, Ghana had gotten the largest amount of $1 billion as support from the IMF.

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We support #Nigeria’s efforts to limit the effect of #COVID19 and the sharp fall of oil prices. The US$3.4 billion approved by our Board is the largest IMF COVID-19 emergency financing provided to-date. It will help Nigeria free up more resources to protect lives and livelihoods. https://t.co/kc3U0uVO7J

— Kristalina Georgieva (@KGeorgieva) April 28, 2020