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Business News

Nigeria gets $3.4 billion disbursement from IMF, interest rate 1%

Barely a week after its board’s approval, the International Monetary Fund (IMF), has disbursed the sum of $3.4 billion to the CBN.

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Nigeria will enjoy foreign investments before December, IMF predicts, IMF, World Bank to hold meetings via conference call over Coronavirus epidemic,Covid-19: IMF pledges to assist low-income member countries, Nigeria gets $3.4 billion disbursement from IMF, interest rate 1%

Barely a week after its board’s approval, the International Monetary Fund (IMF), has disbursed the sum of $3.4 billion to the Central Bank of Nigeria (CBN).

This emergency fund, which is a Rapid Financing Instrument (RFI), was approved by the IMF on April 28, 2020, to help Nigeria mitigate the devastating impact of the coronavirus pandemic and also to sort out balance of payment issues.

This was disclosed by the Managing Director of IMF, Kristalina Georgieva, during an interview with CNBC Africa, on Tuesday, May 5, 2020.

READ MORE: GTBank, Access Bank, Zenith, FBN, 16 others disburse CBN’s N610.4 billion to farmers  

In her statement, the IMF boss said, “We have already disbursed the money to Nigeria. In emergency assistance, once the board approves, we disburse within days to the country and it goes to the Central Bank in dollars before it’s converted to naira for the Federal Government’s use.”

“The conditions are quite favourable. The repayment period is five years, up to two and half years is a grace period and the interest on the loan is 1%,” she added.

(READ MORE: The CBN data that can reveal whether we are already in a recession)

Georgieva said that there was a need for all receivers of the emergency funds in Nigeria to keep receipts of expenditure. She pointed out that Nigerians should demand accountability from its leaders in the spending of the emergency funds.

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According to her, the funds could not afford to have credibility and accountability take the back seat in the course of the coronavirus crisis.

READ ALSO: Banks repay N387 billion agric loan to CBN

Going further, she said that Nigeria had already met and exceeded the safeguards for disbursement of the funds.

This loan is the single largest disbursement by the Bretton Woods institution to any country that has been ravaged by the coronavirus pandemic.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Business News

FG to extend fuel subsidy for 6 months

Reports indicate that the FG plans to spend N720 billion for the next 6 months on Premium Motor Spirit (PMS) subsidies.

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Subsidy and PIB, petrol price, PPPRA, We have sufficient PMS stock for 38 days- DPR 

The Nigerian Government may have suspended plans to end its subsidy payments as reports indicate that the FG plans to spend N720 billion for the next 6 months on Premium Motor Spirit (PMS) subsidies.

This was disclosed in an exclusive report by The Guardian on Sunday, citing that President Muhammadu Buhari ordered that the subsidies remain in place for the next 6 months.

“Specifically, President Buhari has asked the Nigeria National Petroleum Corporation (NNPC) to suspend any idea on subsidy removal for five to six months so that a plan that does not harm ordinary Nigerians is evolved if the deregulation must go on,” a Government official said.

What you should know 

  • NNPC GMD, Mele Kyari disclosed last month that the “NNPC may no longer be in a position to carry that burden because we cannot continue to carry it in our books,” after reports of fuel imports under-recovery revealed the FG was spending N120 billion a month on subsidy.
  • Kyari also hinted that they may soon start selling PMS at market prices saying: “NNPC importing PMS at market price and selling at N162/L. The actual market price should be between N211 and N234/L. Meaning is that consumers are not paying the market price.
  • “NNPC is currently the sole importer of PMS, and we’re trying to exit the underpriced sale of PMS. Eventual exit is inevitable, when it will happen I cannot say, but engagements are ongoing because the government is cognisant of the implications.”

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Business

FG to name new train station after Mobolaji Johnson

FG to name flagship train station located at Ebute Metta after the former Governor of Lagos State, Mobolaji Johnson.

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The Federal Government is set to name its flagship train station located at Ebute Metta after the former Governor of Lagos State, Mobolaji Johnson.

This was disclosed by the Ministry of Transportation via its Twitter handle on Sunday.

It tweeted, “New indoor photos of our flagship station located at Ebute Metta. It is to be named Mobolaji Johnson Station after the former Governor of Lagos State. Please share your thoughts.”

What you should know

The Federal Government has also stated why the China Civil Engineering Construction Company (CCECC) Nigeria Limited could not link the final part of the Lagos-Ibadan rail line to the sea, according to Nairametrics.

The government in its explanation said that it was due to disruption by trucks going in and out of the port complex.

According to a press statement signed by the Director, Press and Public Relations of the Federal Ministry of Transportation, Eric Ojiekwe, this disclosure was made by the Minister of Transportation, Rotimi Amaechi, while on a routine tour of the Lagos-Ibadan rail line project on Saturday, April 10, 2021.

 

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