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IMF Sets To Give Nigerian Government $3.4bn Fresh Loan



IMF Endorses VAT Increase, Gives Reason

The Nigerian Government might be receiving a fresh bundle of loans from the federal government as a world giant financial institute (IMF) set to meet any time soon.

Speaking with high hopes that the request will be given to the Nigerian government,The Minister of Finance and Chairman, Special Ministerial Task Force on COVID-19, Zainab Ahmed, said the IMF credit and similar loan requests from the World Bank and the African Development Bank to cushion the effects of the pandemic on the economy.

In a statement posted on its website on Tuesday, the IMF quoted its Managing Director, Ms Kristalina Georgieva, as acknowledging the request by the Federal Government, adding, “We are working hard to respond to this request so that a proposal can be considered by the IMF’s executive board as soon as possible.”
She noted that the Federal Government had initiated a number of measures aimed at containing the spread of the virus and its impact.
The measures, according to the IMF, include a swift release of contingency funds to Nigeria Centre for Disease Control.
It added that the Nigerian government was working on an economic stimulus package that would help provide relief for households and businesses impacted by the downturn.
She said, “Nigeria’s economy is being threatened by the twin shocks of the COVID-19 pandemic and the associated sharp fall in international oil prices.”
Georgieva added: “To support these efforts, Nigeria’s government has requested financial assistance under the Fund’s Rapid Financing Instrument.
“This emergency financing would allow the government to address additional and urgent balance of payment needs and support policies that would make it possible to direct funds for priority health expenditures and protect the most vulnerable people and firms.”

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