IMF speaks on Buhari’s new loan request amidst COVID-19, oil price fall

The International Monetary Fund (IMF) on Tuesday say its Executive Board is working to respond to President Mohaamadu Buhari’s new loan request even as Nigeria is battling to rescue the economy amidst the COVID-19 pandemic and the associated sharp fall in international oil prices.

Ms. Kristalina Georgieva, Managing Director of the IMF in a statement said that Nigeria’s economy is under threat and stressed that the new loan would allow the government to address additional and urgent balance of payments needs and support policies that protect the most vulnerable people and firms.

Georgieva said, “Nigeria’s economy is being threatened by the twin shocks of the COVID-19 pandemic and the associated sharp fall in international oil prices.

“President Buhari’s administration is taking a number of measures aimed at containing the spread of the virus and its impact, including by swiftly releasing contingency funds to Nigeria’s Center for Disease Control and working on an economic stimulus package that will help provide relief for households and businesses impacted by the downturn.

“To support these efforts, Nigeria’s government has requested financial assistance under the Fund’s Rapid Financing Instrument (RFI). This emergency financing would allow the government to address additional and urgent balance of payments needs and support policies that would make it possible to direct funds for priority health expenditures and protect the most vulnerable people and firms.

“We are working hard to respond to this request so that a proposal can be considered by the IMF’s Executive Board as soon as possible.”