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JUST IN: IMF approves $3.4bn for Nigeria's COVID-19 fight

Afnews Editor

Apr 28, 2020

The board of the International Monetary Fund (IMF) has approved the sum of $3.4 billion to support Nigeria's COVID-19 fight.

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The emergency financial assistance to Nigeria is the highest so far to any member country.

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The assistance, facilitated via the Rapid Financing Instrument (RFI), will help limit the decline in Nigeria's international reserves, the IMF said.

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It will also help to provide financing for the country's budget, which has been severely affected by falling oil prices triggered by the pandemic and price wars.

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The IMF praised the Nigerian government's "immediate" response to the crisis, describing it as "welcome."

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However, it noted that short-term focus should be on higher health spending and palliative for households and businesses.

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The financial body also said Nigeria should take steps to unify its exchange rate as quickly as possible.

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After the COVID-19 crisis passes, Nigeria's "focus should remain on medium-term macroeconomic stability, with revenue-based fiscal consolidation essential to keep Nigeria's debt sustainable and create fiscal space for priority spending,", Deputy Managing Director and Acting Chair of the IMF, Mr Mitsuhiro Furusawa said.

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