The staff of the International Monetary Fund (IMF) will recommend the approval of $3.4 billion in emergency funding to Nigeria when the lender’s executive board meets next week, two people with direct knowledge of the plan told Bloomberg.
The loan, scheduled to be repaid in a maximum of five years, would be the largest allocation yet 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 outbreak is reducing demand for and prices of Africa’s commodities, while domestic lockdowns have shuttered industries and trade.
Nigeria’s request for $3.4 billion will be considered on April 28, according to an IMF spokesperson.
Hit by crashing oil prices and lockdowns, Nigeria requested the amount under the Rapid Financing Instrument, which offers funding without the strings of a full program.
Nigeria also requested another $3.5 billion in total from the World Bank and the African Development Bank.