ADVERTISEMENT
  • The Membership Club
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Monday, March 8, 2021
Premium Times Nigeria
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
Nigeria’s Vice President Yemi Osinbajo speaks during the Nigeria/Ecowas Trade and Investment for Development forum in Abuja, Nigeria. [REUTERS/Afolabi Sotunde]

Nigeria’s Vice President Yemi Osinbajo speaks during the Nigeria/Ecowas Trade and Investment for Development forum in Abuja, Nigeria. [REUTERS/Afolabi Sotunde]

What Nigeria told IMF to secure $3.4 billion loan

byBassey Udo
April 30, 2020
2 min read
ADVERTISEMENT

Details emerged on Wednesday about the case the Nigerian government made to secure the approval of the Executive Board of the International Monetary Fund (IMF) to its request for a $3.4 billion emergency loan. The loan is to assist the country’s effort to contain the impact of the coronavirus pandemic on her economy.

An IMF Country/Staff Report on Nigeria No. 20/142 published on Wednesday disclosed that between April 21 and 22, Nigerian officials in charge of economic development, led by Vice President Yemi Osinbajo engaged the IMF Board through a web conference on the request.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, and the Governor of the Central Bank of Nigeria, (CBN), Godwin Emefiele, also participated in the conference arranged to deliberate on Nigeria’s request under the Rapid Financing instrument (RPI).

The report said Nigeria told the IMF how the COVID-19 pandemic was severely impacting the country’s economic activity following the sharp fall in international oil prices and reduced global demand for Nigeria’s oil.

These developments, the Nigerian delegation noted, were worsening the country’s fiscal and external positions, as Nigeria’s oil and gas exports (84 per cent of total exports) were expected to fall by more than $26.5 billion.

With the economy projected to contract by almost 3.5 per cent in 2020, a six-percentage point drop relative to pre-COVID-19 projections, the officials said the already high downside risks have heightened with the pandemic.

Apart from sharper and protracted falls in crude oil prices, a declining oil production from future Organisation of Petroleum Exporting Countries (OPEC) output caps or inability to sell oil cargoes, the officials said more protracted disruptions to economic activity were due to a more expansive effect of the pandemic.

On justification for the request for support, Nigeria said it was facing an immediate balance of payments challenge, given the sharp contraction in oil prices and the COVID-19 pandemic, which, if not addressed, would result in immediate and severe economic disruption.

“There is also a high degree of uncertainty on the duration and scale of the COVID-19 impact, which imply that an upper credit tranche (UCT) quality programme cannot be quickly put in place.

RelatedNews

CBN says new scheme will ease diaspora remittances

Nigeria’s COVID-19 vaccination, other health stories published last week

We didn’t divert N3 billion CBN Agric loan – Bayelsa Govt

“Send a dollar, get five naira free”: CBN launches forex promo

“The authorities are seeking financial assistance under the IMF’s Rapid Financing Instrument (RFI) exogenous shock window of SDR 2454.5 million, equivalent to 100 per cent of quota. The authorities intend to use the resources for budget support. Staff supports this request,” Nigeria said.

On macroeconomic policies, Nigeria said since the onset of the crisis, its authorities have allowed greater exchange rate (FX) flexibility and have taken important steps towards unification of existing FX windows, which should be finalised immediately.

Nigeria's finance Minister, Zainab Ahmed [PHOTO: Pulse.ng]
Nigeria’s finance Minister, Zainab Ahmed [PHOTO: Pulse.ng]

In assuring the IMF of government’s seriousness, Nigeria resolved to put certain measures in place to contain the pandemic and mitigate its economic impact.

Dangote adbanner 728x90_2 (1)

Once the COVID-19 crisis passes, it said, government intends to resume the revenue-based fiscal consolidation programme—which it started this year by increasing the VAT rate from 5 per cent to 7.5 per cent.

Other policies include introduction of an automatic fuel pricing mechanism, while creating fiscal space for priority spending and avoiding recourse to central bank financing. Staff would assess public debt to be sustainable and ensure that there is adequate capacity to repay the Fund.

The IMF acknowledged that the Nigerian government was committed to continue to strengthen financial supervision and regulation in order to safeguard macro-financial stability.

To ensure financial assistance received as part of the COVID-19 response is used for intended purposes, the Nigerian authorities committed to undertake an independent audit of crisis-mitigation spending and related procurement processes and to publish procurement plans and notices for all emergency-response activities, including names of awarded companies and beneficial owners.

  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: To advertise here . Call Willie +2347088095401...



JOIN THE CONVERSATION

  • Disqus (5)
premiumtimes



PT Mag Campaign AD

Previous Post

Coronavirus: Nigeria records 196 cases, seven deaths on Wednesday

Next Post

Coronavirus: Osun apprehends travellers from Northern Nigeria

Bassey Udo

Bassey Udo

Bassey Udo is PREMIUM TIMES' Business & Economy Editor. He has covered finance, energy, oil, gas & extractive industries for over a decade. He is a winner of the Wole Soyinka Award for Investigative Journalism, and the Thomson Reuters Foundation (Wealth of Nations) Award for Business Reporting. Bassey is an alumnus of the U.S. International Visitors Leadership Programme. Twitter: @ba_udo

More News

President Muhammadu Buhari

Buhari mourns Supreme Court judge, Ngwuta

March 7, 2021
Four suspected bandits killed, many dislodged by military in Kaduna – Official

Four suspected bandits killed, many dislodged by military in Kaduna – Official

March 7, 2021
Cattle used to illustrate the story.

Notorious kidnapper, Iskilu Wakili, arrested in Oyo

March 7, 2021
Justice Sylvester Ngwuta

Supreme Court judge, Ngwuta, is dead

March 7, 2021
ARMY: Nigerian Soldiers (Army) on duty. [PHOTO CREDIT: The Guardian]

Travellers stranded on Maiduguri-Damaturu highway as Boko Haram attacks military base

March 7, 2021
Godwin Emefiele, Governor of Central Bank of Nigeria (CBN)

CBN says new scheme will ease diaspora remittances

March 7, 2021
Next Post
Osun apprehends travellers from Northern Nigeria

Coronavirus: Osun apprehends travellers from Northern Nigeria

International Monetary Fund (IMF)

IMF explains conditions for Nigeria's $3.4 billion loan

Discussion about this post

Search

#EndSARS: Latest Updates




Polaris Bank


JAIZ Ad


Access Bank Ad


NITDA Ad





Glo Ad

Subscribe to News via Email

Enter your email address and receive notifications of news by email.

Join 1,630,419 other subscribers.

Advertisement






netherland biz school Advert



Zenith Advert

ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • Opinion
  • PT Hausa
  • The Membership Club
  • Dubawa
    • Dubawa NG
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
  • Digital Store
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.