$3.4BN FACILITY FROM WORLD BANK/IMF IS NOT A LOAN”- Mrs. Zainab Shamsuna Ahmed - THE BUSINESS PACKAGE

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Wednesday, April 8, 2020

$3.4BN FACILITY FROM WORLD BANK/IMF IS NOT A LOAN”- Mrs. Zainab Shamsuna Ahmed



There is a misconception in the media that the Government is taking a loan of N2.5tr from World Bank, IMF and the AFDB. That report is not true; it is a deliberate misrepresentation. 

The Honourable Minister was categorical that the $3.4b facility from the World Bank/IMF is not a loan, but Nigeria's contribution/holding/savings with the organisations, which the Government is asking for. The facility has no conditionalities and this facility is at the behest of the World Bank/IMF who have encouraged member countries to draw as a facility to help them cover the fiscal space in their different countries. As many as over 80 countries have written to the World Bank/IMF to draw that facility. 

According to the Honourable Minister, "Federal Government has made a request To Draw From Nigeria’s Existing Holdings With The World Bank Group / IMF.”

"The Federal Government is continuing its engagements with the World Bank, the African Development Bank, the Islamic Development Bank and the International Monetary Fund (IMF) to access concessional funding to support the implementation of the 2020 Budget.”

“We have also applied for funding from the International Monetary Fund’s COVID-19 Rapid Credit Facility to draw from our existing holdings with the World Bank Group / International Monetary Fund.”

“This facility will not be tied to any conditionalities. However, it is important to clarify that Nigeria does not intend to negotiate or enter into a formal programme with the International Monetary Fund, at this time, or in the foreseeable future.” she said.

Yunusa Tanko Abdullahi 
Special Adviser, Media & Communications 
To the Honourable Minister of Finance, Budget and National Planning.

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