The loan, to be repaid within five years, is the largest allocation yet by the IMF to an African country’s bid to contain the pandemic.
As at April 15, 2020, up to a hundred countries had approached the IMF for similar support under its rapid financing instrument. They urged the fund to ramp up crisis response for emerging markets and developing countries to mitigate the impact of the pandemic. Buhari had in a letter to the Senate president stated: “To ensure that there are adequate funds to finance critical projects and programmes in the 2020 budget, I hereby seek the Senate’s approval by resolution to raise the N850 billion of new external borrowing in naira from the domestic capital market instead of from the international capital market.”
“However, it remains our intention to access the international capital market when conditions improve to refinance this N850 billion of new borrowing and epitomise the benefits inherent in external borrowing.” Reacting to the development, the Chief Executive Officer of Cowry Asset Management Limited, Johnson Chukwu, said: “It might be difficult for the Federal Government to raise fund externally. So, it is expected at this time because government’s proposed revenue has collapsed. It will therefore not be able to meet its financial commitment if it does not access new funding sources.
On his part, the President of Association of Stockbroking Houses of Nigeria , Patrick Ezeagu, advised: “Government should go about it the right way. The fund must be deployed on a specific project, not on a basket of projects, so that the project can be monitored. It will also help to avoid some leakages and misappropriation when it is channelled on a particular infrastructure project.”
Maas said the German government had successfully campaigned in the G20 and the Paris Club in favour of a debt moratorium for countries heavily impacted by the economic impact of COVID-19.
What emergency? A country with poor healthcare, and even can’t audit for the past 5yrs in government, likewise the past administrations. This people lending money to Nigeria are part of the problem, I’m sure this money are been sent to Nigeria for other purpose. Never trust IMF.
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