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Nigeria to Repay $3.4bn IMF Loan in Five Years

1 Min Read

The Nigerian Government has clarified some of the conditions behind the recent loan facility granted to it by the International Monetary Fund (IMF).

The Federal Government said the loan is a flexible instrument that has to be paid back within five years with an interest rate of one percent per annum.

See Also: Gov. Makinde Slashes Salaries of Political Appointees by 50 Per cent

Mrs Zainab Ahmed, Minister for finance also added that the loan has a repayment moratorium of three and a half years despite giving assurances earlier that the loan would not be tied to any conditionalities.

Many stakeholders have urged the Nigerian government to deal very carefully with the IMF recalling the disastrous Structural Adjustment Programme foisted on Nigeria by the IMF under the Babangida regime.

The SAP as it was known then crippled the Nigerian economy and led to the total collapse of the Agricultural and manufacturing sectors of the economy.

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