• Monday, December 23, 2024
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IMF says $3.4bn Nigeria loan disbursed to CBN

IMF-building

IMF building

The International Monetary Fund (IMF) says it has credited the Central Bank of Nigeria (CBN) with the $3.4 billion loan approved to assist the country’s fight against COVID-19 and resolve urgent balance of payment needs.

The Fund’s managing director, Kristalina Georgieva, made the disclosure in an interview on CNBC Africa.

“We have already disbursed (the money to Nigeria). In emergency assistance, (once) the board approves, we disburse within days to the country and it goes to the Central bank in dollars before it’s converted to naira (for the federal government’s use),” Georgieva said.

Read also: Lenders to resort to salary cut as CBN, Bankers’ Committee suspend lay-offs

The $3.4 billion loan, when reflected in the CBN’s reserve data, will push gross external reserves to a near two month high of $36.9 billion from $33.5bn as of April 30.

The loan is the single biggest disbursement by the IMF for any country with the coronavirus pandemic, yet it may be too little to make a big dent on Nigeria’s broader economic problems which include a possible balance of payment deficit of $9bn this year.

Hit by crashing oil prices and lockdowns to curb the spread of the Covid-19 pandemic, Africa’s biggest crude producer has also requested $3.5 billion in total from the World Bank and the African Development Bank.

 

Ololade Akinmurele a seasoned journalist and Deputy Editor at BusinessDay, holds a crucial position shaping the publication’s editorial direction. With extensive experience in business reporting and editing, he ensures high-quality journalism. A University of Lagos and King’s College alumnus, Akinmurele is a Bloomberg-award winner, backed by professional certifications from prominent firms like CitiBank, PriceWaterhouseCoopers, and the International Monetary Fund.

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