Nigeria has received a loan of $3.4billion from the International Monetary Fund (IMF). The loan was given to support the country\u2019s efforts to address the adverse economic impact of the coronavirus and the fall in the price of oil, Nigeria\u2019s major export commodity. The loan is to be fully repaid by 2025 in eight quarterly disbursements beginning after three years and three months from when it is disbursed, with a 1% interest rate. Experts have argued that a non-concessional loan such as this attracts other charges such as a commitment fee and a service charge.\u00a0 While some observers view the loan in terms of its purpose to address the country\u2019s urgent Balance of Payments (BOP) needs, others view it as a debt trap, which may hamper on the country\u2019s efforts towards economic recovery. They wonder why Nigeria opted\u00a0 to borrow under the IMF\u2019s Rapid Financing Instrument (RFI), as opposed to the interest-free and long term Rapid Credit Facility (RCF), with a maturity period of 10 years. <\/p>\n\n\n\n
Issues of transparency and accountability remain major concerns over the\nutilisation of funds received by the Nigerian Government in form of donations and loans, by\nmultilateral, private and other organisations. The IMF is reported to have\nattached conditions which Nigeria must fulfill to be able to draw on the loan; including\nremoval of subsidy on petroleum products, scrapping of multiple exchange rates\nand downsizing of its civil service. <\/p>\n","protected":false},"excerpt":{"rendered":"
Nigeria has received a loan of $3.4billion from the International Monetary Fund (IMF). The loan was given to support the country\u2019s efforts to address the adverse economic impact of the coronavirus and the fall in the price of oil, Nigeria\u2019s major export commodity. The loan is to be fully repaid by 2025 in eight quarterly […]<\/p>\n","protected":false},"author":2,"featured_media":1387,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[58],"class_list":["post-1375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-imf-approves-3-4billion-loan-for-nigeria"],"_links":{"self":[{"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/posts\/1375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/comments?post=1375"}],"version-history":[{"count":2,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/posts\/1375\/revisions"}],"predecessor-version":[{"id":1392,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/posts\/1375\/revisions\/1392"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/media\/1387"}],"wp:attachment":[{"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/media?parent=1375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/categories?post=1375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/placng.org\/Legist\/wp-json\/wp\/v2\/tags?post=1375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}