IMF Approves $3.4bn For Nigeria’s COVID-19 Fight (Read Full Details)

It was reported that the board of the International Monetary Fund (IMF) has approved the sum of $3.4 billion to support Nigeria’s COVID-19 fight. And the emergency financial assistance to Nigeria is the highest so far to any member country.

The IMF Executive Board today approved US$3.4 billion to help #Nigeria address the severe economic impact of the #COVID19 pandemic and the sharp fall of oil prices. #IMFAfrica — IMF (@IMFNews) April 28, 2020

It was disclosed by IMF that the assistance, facilitated via the Rapid Financing Instrument (RFI), will help limit the decline in Nigeria’s international reserves.

Moreover, it will also help to provide financing for the country’s budget, which has been severely affected by falling oil prices triggered by the pandemic and price wars.

However, the IMF praised the Nigerian government’s “immediate” response to the crisis, describing it as “welcome.” However, it noted that short-term focus should be on higher health spending and palliative for households and businesses. And the financial body also said Nigeria should take steps to unify its exchange rate as quickly as possible.

However, the Deputy Managing Director and Acting Chair of the IMF, Mr Mitsuhiro Furusawa, said that after the COVID-19 crisis passes, Nigeria’s “focus should remain on medium-term macroeconomic stability and with the revenuers based fiscal consolidation essential to keep Nigeria’s debt sustainable and create fiscal space for priority spending.

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