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Nigeria to borrow $6.9bn from World Bank, IMF, AfDB

Published by on April 7th, 2020.


The Federal Government is to raise the sum of $6. 9bn through external borrowing from the World Bank , the International Monetary Fund and the African Development Bank.

The Minister of Finance , Budget and National Planning, Mrs Zainab Ahmed, disclosed this on Monday in Abuja during a media briefing on the fiscal policy measures to tackle the impact of the coronavirus pandemic on the economy.

The amount, according to her , is in form of concessional funding to support the implementation of the 2020 budget.

The borrowing became imperative as a result of the negative impact of the coronavirus pandemic , which had led to unprecedented disruption in global supply chains.

It has led to a sharp drop in global crude oil prices , turmoil in global stock and financial markets , and lockdown of movements of persons in many countries.

Giving a breakdown of the $6. 9bn, the finance minister said the sum of $3. 4bn would be sourced from the IMF , $2. 5bn from the World Bank while the balance of $1bn is expected to be raised from the AfDB.

Out of the World Bank facility of $2. 5bn, she said the sum of $1. 5bn would go to the Federal Government while the balance of $1bn would go to the 36 state governments .

The funds , according to the finance minister , is expected to come into the country within the next six to 12 weeks.

She said the $3. 4bn from the IMF would not be tied to any conditionality, adding that so far , about 80 countries had applied for such funding facility .

Ahmed said , “ 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 . ”

Credits: Punchng

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