Modupe Gbadeyanka
By Modupe Gbadeyanka
The federal government has stressed that the $3.4 billion facility it is taking from the International Monetary Fund (IMF) is not a loan.
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, stated that the money is mainly Nigeria’s contribution/holding/savings with the global lender, which government is asking for in this critical time of need.
The Special Adviser to the Minister on Media and Communications, Mr Yunusa Tanko Abdullahi, disclosed in a statement on Wednesday that the media has created a misconception that the money and others is a loan the Nigerian government is taking from the IMF, World Bank and the African Development Bank (AfDB).
The Minister, who described this as a “deliberate misrepresentation,” explained that it was these bodies that encouraged this government and others to take the “facility to help them cover the fiscal space in their different countries.”
According to her, the $3.4 billion being requested from IMF “has no conditionalities” and 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.
