According to reports, the Federal Government of Nigeria has received the $3.4bn emergency loan promised by the the International Monetary Fund.
In a recent statement, the Federal Government mentioned that it will utilize the funds, which was approved under the Rapid Financing Instrument by the Executive Board of the IMF on April 28, in addressing challenges arising from the economic impact of the COVID -19 in the country.
Kristalina Georgieva, IMF Managing Director, reportedly told CNBC Africa on Tuesday that the $3.4bn had been credited to the account of the Central Bank of Nigeria.
The IMF chief emphasized the importance of transparency and accountability in the management of the funds.
The government mentioned it has agreed to allow the IMF to conduct a due diligence exercise on the CBN, in line with the Fund’s safeguards assessment program.
The Nigerian Government also said that disbursement of the funds will be made public, adding that there are plans to carry out an independent audit of all emergency expenditure at the end of the pandemic.
Georgieva reportedly revealed that Nigeria has met and exceeded the yardsticks for the disbursement of the funds.
According to her, the money was credited to the CBN’s account in dollars, after which it would be converted to naira.
“We have already disbursed. In emergency assistance, the board approves, we disburse within days to the country and it goes to their central bank in dollars before it gets converted into naira in the case of Nigeria.
“The conditions are quite favourable.
“Repayment period is five years, up to two and half years is grace period and the interest on the loan is one per cent,” she said.
Georgieva, in the same breath, said IMF will continuously support Nigeria and other member countries.
“We have put in place policy tracking action, and we are seeing progress each country is making.
“The IMF will continue to support countries and shield them from catastrophic implications of the COVID-19 crisis,” she said.