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Nigerian Government To Borrow $6.9BN From World Bank, IMF, AFDB

Nigeria’s Finance Minister, Zainab Ahmed, has indicated that the government is in talks with the World Bank, the International Monetary Fund and the African Development Bank to raise $6.9bn through external borrowing.

The minister said this when she briefed the media on the fiscal policy measures to tackle the impact of the coronavirus pandemic on the economy.

She said the amount is in the form of concessional funding to support the implementation of the 2020 budget.

In a breakdown of the $6.9billion, Mrs Ahmed said they would source $3.4billion from the IMF, $2.5bn from the World Bank and $1bn from the AfDB.

She explained that out of the $2.5billion facility from the World Bank facility, $1.5bn would go to the Federal Government while the remaining $1bn would be given to the 36 states.

She added that they expect to receive the funds in the next 6 to 12 weeks.

She explained that no conditions will be attached to the $3.4bn from the IMF, adding that so far, about 80 countries had applied for such a funding facility.

“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 the IMF’s COVID-19 Rapid Credit Facility to draw from our existing holdings with the World Bank Group/IMF.”

“This loan will not be tied to any conditionality. However, it is important to clarify that Nigeria does not intend to negotiate or enter into a formal programme with the IMF at this time or in the foreseeable future.”

She added,

“Nigeria has a contribution of $3.4bn with the IMF and we are entitled to draw up to the whole of that $3.4bn. We have in the first instance applied for that maximum amount.

We have requested from the World Bank $2.5bn, from the ADB $1bn. Let me state that the requests are for the nation, both for the FG and the states.”

Nigeria is going to these global agencies because of the effect of COVID-19 on the economy.

The facility is to curb the spread of the pandemic and mitigate its effect on the economy.

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