Adedapo Adesanya
By Adedapo Adesanya
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, has explained why Nigeria did not get debt relief from the International Monetary Fund (IMF) because the country was not indebted to the lender.
The IMF had granted relief to 25 countries it described as poor. Nineteen of the 25 nations were from the African continent.
The countries were considered under the IMF’s revamped Catastrophe Containment and Relief Trust as part of its effort to address the impact of the COVID-19 pandemic.
In a number of tweets sent via her official Twitter page – @ZShamsuna, the Finance minister clarified the position that Nigeria had no outstanding debt with the Bretton Wood institution, reason it was not eligible for the relief.
She wrote, “It is true Nigeria is not a beneficiary of recent IMF debt relief for 25 countries. As stated in IMF Executive Board statement, the relief ‘provides grants to our poorest and most vulnerable members to cover their IMF debt obligations for an initial phase over the next 6 months.
“Since Nigeria is not indebted to the IMF, there is no outstanding debt obligation to be forgiven. Nigeria’s application for new IMF financing is under consideration and receiving attention. The new application is for financing under the Rapid Financing Initiative (RFI).”
She further explained that Nigeria is entitled to access up to 100 percent of its quota under the Rapid Financing Initiative (RFI).
Last week, the Managing Director of the IMF noted the economy is being threatened by the twin shocks of the COVID-19 pandemic and the associated sharp fall in international oil prices and noted that the country had requested for financial assistance under the RFI.
“This emergency financing would allow the government to address additional and urgent balance of payments needs and support policies that would make it possible to direct funds for priority health expenditures and protect the most vulnerable people and firms.
“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 said.
