Nigeria has revealed plans to draw $7bn loan from the World Bank, the International Monetary Fund, African Development Bank and the Islamic Development Bank to support its budget.
This was made known by the country’s Minister of Finance, Budget and National Planning, Zainab Ahmed, at a media briefing in Abuja on Monday while discussing steps outlined to tackle the economic impact of the coronavirus pandemic as it affects the 2020 Budget.
The impact of COVID-19 pandemic has been unprecedented. From shocks arising from drop in global supply chains to restrictions of movements the world over. Businesses have been hit, fall in the prices of crude oil and turmoil in the global stock markets left significant consequences behind for various economies.
Ahmed disclosed that the funds expected would be used to support the implementation of the budget.
According to her, $3.4bn will come from IMF, $2.5bn from World Bank and $1bn from AfDB.
“We are continuing our engagements with the World Bank, the AfDB, the IDB and the IMF to access concessional funding to support the implementation of the 2020 Budget.
“We have also applied for funding from IMF’s Covid-19 Rapid Credit Facility to draw from our existing holdings with the World Bank Group/IMF,” she said.
Meanwhile, she clarified that no conditions were attached to the funds and that the government had no immediate plans to “enter into any formal programme with the IMF.”
The minister added, “Nigeria has a contribution of $3.4bn with the IMF and we are entitled to draw up the whole of that $3.4bn.”
The funds are expected to come in within the next three months, Financial Street gathered.