By Deborah Mustapha
The news gathered recently has said that Nigeria is set to borrow $7.050 billion, equivalent of N2.679 trillion, from multilateral financial institutions and the Nigeria Sovereign Investment Authority (NSIA) with the sole aim to balance the impact of COVID-19 on the economy.
According to analysis, it is shown that $3.4 billion is sourced from International Monetary Fund (IMF), $2.5 billion from World Bank and $1 billion from the African Development Bank (AfDB), $150 million from NSIA, calculating the total to $7.050 billion or N2.679 trillion at an exchange rate of N380/$.
For breakdown and accountability, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has said that measures being taken in response to the COVID-19 pandemic, noted that the federal government had already applied for the release of its contributions to IMF totalling $3.4 billion under the Fund’s Rapid Credit Facility.
‘The country is also seeking a $2.5 billion loan from World Bank, $1 billion from the AfDB and an undisclosed amount from the Islamic Development Bank (IDB).
She further stressed that $150 million would be drawn from the Stabilisation Fund of NSIA to augment the June allocation to be shared by the Federation Account Allocation Committee (FAAC).
Explaining the moves towards seeking external interventions from multilateral institutions, she said Nigeria has a contribution of $3.4 billion with IMF and entitled to draw up to the whole $3.4 billion or less. We have in the first instance applied for that maximum amount; then in the process when we negotiate, we might get the maximum amount or less but that is the amount of our contribution with IMF and this is the provision that IMF has made for every member-country that you can apply for between 50 to 100 per cent of your contribution to IMF.
“However, this programme that has no conditions attached to IMF programmes and this is not an IMF programme”, she submitted.