From Akanimo Kufre ( The New Diplomat’s Akwa Ibom & Cross River Correspondent)
The International Monetary Fund, IMF on Tuesday said it is considering a proposal for financial assistance from Nigeria. The funds being sought by the Federal government according to the IMF is to assist Nigeria cushion the effects, and economic challenges the country currently faces, especially against the background of dwindling oil revenues and the impact of COVID 19 pandemic.
In a statement made available to our correspondent, IMF managing director, Kristalina Georgieva said “Nigeria’s economy is being threatened by the twin shocks of the COVID-19 pandemic and the associated sharp fall in international oil prices.”
The statement added: ” President Buhari’s administration is taking a number of measures aimed at containing the spread of the virus and its impact, including by swiftly releasing contingency funds to Nigeria’s Center for Disease Control and working on an economic stimulus package that will help provide relief for households and businesses impacted by the downturn.
“To support these efforts, Nigeria’s government has requested financial assistance under the Fund’s Rapid Financing Instrument (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.”
Reacting to this development, Prof. Leo Ukpong, a professor of financial economics said it was a timely decision. The economics professor however expressed concern about the likely conditionalities that might be attached to the release of such emergency funds to the Federal government. He said: ” And IMF never gave money without a condition, they must always have a condition. For example they may say that the equipment to be purchased must be from some particular place or supplied by a particular country. Which means, it will create job or reduce their inventory. If that is the case, that means the long term impact may not be beneficial to Nigeria. Am not sure of the conditions yet. However any help to control this virus is good for us..”
He added: ”More money will appear to be hopefully helpful in conducting research in terms of the vaccination and to increase the capacity to accommodate COVID 19 testing, isolation patients and relief measures. In terms of the impact, if we use the funds properly I think it will help us take control and reduce the pandemic situation we are facing. However, from an economic point of view, if there are constraints on what those funds will do. In other words we don’t have the whole details, if they say they have to send the Chinese Doctors through WHO it might be a window to really help us but to empower certain countries. Right now we’re faced with these Chinese Doctors that are invited to bring some equipment and knowledge transfer and our Doctors are protesting that they have the capable hands why do you bring Chinese.”
Recall that of recent, Nigeria has been facing some challenges occasioned by dwindling oil revenues and Covid-19 pandemic. A few days ago, Minister of Finance, Budget and National Planning , Mrs Zainab Ahmed disclosed that current FAAC’s monthly receipts have fallen as low as N400bn, a development which prompted president Muhammadu Buhari to source additional $150m from NSIA to augment the crippling shortfalls in the interim.
