Nigeria: Request for Purchase under the Rapid Financing Instrument -Press Release; Staff Report; and Statement by the Executive Director for Nigeria

April 29, 2020

Preview Citation

Format: Chicago

Nigeria: Request for Purchase under the Rapid Financing Instrument -Press Release; Staff Report; and Statement by the Executive Director for Nigeria, (USA: International Monetary Fund, 2020) accessed November 8, 2024

Summary

This paper presents Nigeria’s Request for Purchase Under the Rapid Financing Instrument (RFI). The authorities’ immediate actions to respond to the crisis are welcome. The short-term focus on fiscal accommodation would allow for higher health spending and help alleviate the impact of the crisis on households and businesses. Steps taken toward a more unified and flexible exchange rate are also important and unification of the exchange rate should be expedited. Once the coronavirus disease 2019 crisis passes, the 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. Implementation of the reform priorities under the Economic Recovery and Growth Plan, particularly on power and governance, remains crucial to boost growth over the medium term. The emergency financing under the RFI will provide much needed liquidity support to respond to the urgent balance of payments needs. Additional assistance from development partners will be required to support the government’s efforts and close the large financing gap.

Subject: Banking, COVID-19, Energy subsidies, Exchange rates, Expenditure, Foreign exchange, Health, Oil prices, Prices, Public debt

Keywords: Central bank financing, COVID-19, CR, Crisis pass, Emergency financing request, Energy subsidies, Exchange rates, Financing, Financing need, Global, IMF financial support, IMF lending tracker, ISCR, Oil prices, Shock pass

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/142
Stock No:

1NGAEA2020001
ISBN:

9781513542546
ISSN:

1934-7685

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