The executive board of the International Monetary Fund (IMF) has okayed the 1.3 trillion Naira equivalent to $3.4 billion requested by the Nigerian government for emergency support.
The International Monetary Fund board met on Tuesday to discuss Nigeria’s request for emergency support under the rapid financing instrument.
The grant called Rapid Financing Instrument (RFI) is granted to member countries that are not under any IMF programme.
The IMF Tweeted: 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.
34 years of Bad Romance between IMF and Nigeria. Buhari and his crony capitalist system of government is not fiscally responsible and they’re also frauds of the highest order. Inflation is about to sky rocket unless government spends wisely.
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.
The financial body also said Nigeria should take steps to unify its exchange rate as quickly as possible.
After the COVID-19 crisis passes, Nigeria’s “focus should remain on medium-term macroeconomic stability, with revenue-based fiscal consolidation essential to keep Nigeria’s debt sustainable and create fiscal space for priority spending,”, Deputy Managing Director and Acting Chair of the IMF, Mr Mitsuhiro Furusawa said