Nigeria is the latest recipient of International Monetary Fund (IMF) aid with the executive board approving the country’s request for a US$ 3.4 billion bailout under the Rapid Financing Instrument.
Even before the Covid-19 outbreak, Nigeria’s economy was facing headwinds from rising external vulnerabilities and falling per capita GDP levels. The pandemic—along with the sharp fall in oil prices—has magnified the vulnerabilities, leading to a historic decline in growth and large financing needs.
The IMF financial support will help limit the decline in international reserves and provide financing to the budget for targeted and temporary spending increases aimed at containing and mitigating the economic impact of the pandemic and of the sharp fall in international oil prices, according to the IMF.
