COVID-19: Nigeria Bags $288.5m Loan From AfDB

The Board of Directors of the African Development Bank (AfDB) has approved $288.5 loan for Nigeria as a response to COVID-19 emergencies.

The fund is to help Africa’s most populous nation fight the coronavirus pandemic.

Brandnewsday reports that AfDB Communications and External Relations Department dished out this information in a statement on Friday.

The African Development Bank stated that it had instituted “strong fiduciary measures” to monitor the loan given to Nigeria. The bank also disclosed that it will watch the spendings and as it will maintain a dialogue with the Office of the Auditor-General in Nigeria, to ensure transparency and accountability

The fund, which was approved is to boost Nigeria’s surveillance and response to COVID-19 emergencies, ease the impact on Nigerians and businesses.

AfDB: African Development Bank Said:

Speaking on the effect of the COVID-19 on Nigeria, AfDB revealed that the country faces twin crises of a health epidemic due to the outbreak of the virus and an economic plunge broadly linked to the slump of oil price.

Ebrima Faal, Senior Director of the Bank for Nigeria, said about 40.1 per cent of Nigerians live below the poverty line of 1.90 dollars per day.

The bank said before the COVID-19 outbreak, Nigeria’s economy was projected to grow by 2.9 per cent of GDP in 2020 and further expand by 3.3 per cent in 2021.

Now, the economy is expected to shrink by between 4.4 per cent under a conservative baseline scenario, and 7.2 per cent should the pandemic persist to end-2020.

Faal expressed confidence that the intervention will ensure that “the fiscal position and the economy are sufficiently supported to weather the COVID-19 shocks, thereby limiting its potential adverse impact on livelihoods and the economy more generally”.

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