Nigeria is seeking about $7.050 billion, an equivalent of N2.679 trillion from multilateral financial institutions to combat the impact of COVID-19 on the economy.
Already, the federal government has applied for the release of its contributions to the International Monetary Fund totaling $3.4 billion under the Fund’s Rapid Credit Loan Facility as part of measures to mitigate the impact of coronavirus on the economy.
The country is also seeking a $2.5 billion loan from the World Bank, $1 billion from the African Development Bank (AfDB) as well as an undisclosed amount from the Islamic Development Bank.
Atiku Abubakar, former Vice President of Nigeria has castigated and flayed the idea in his recent letter to African leaders.
“As it stands today, the world is too preoccupied with its challenges to prioritise Africa, and so we have to prioritise ourselves. The issue of Nigeria wanting to borrow $6.9 billion at this time shows the almost delusory state of our government. No one has that type of money to throw about.
China and America, previously our two largest creditors, have taken hits to their economies to the tune of trillions of dollars. If they could, they would consider taking from us at this stage.”
The Minister of Finance, Budget and National Planning, Zainab Ahmed, also stated that $150 million will be drawn from the Stabilization Fund of the Nigerian Sovereign Investment Authority (NSIA) to augment June Federation Account Allocation.