It is anticipated that the Federal Government of Nigeria will make payments to the International Monetary Fund in the amount of $3. 51 billion between 2022 and 2026 in order to repay a $3. 4 billion loan that it received from the organization.
In accordance with information obtained from a webpage on the International Monetary Fund’ s website titled ” Nigeria: Financial Position in the Fund as of January 31, 2022, ” the country has a positive financial position in the IMF as of that date.
Emergency financial assistance to Nigeria was provided by the International Monetary Fund (IMF) in April 2020, to the tune of $3. 4 billion.
Several loans under the Rapid Financing Instrument were approved by the International Monetary Fund’ s Executive Board on April 28, according to the IMF. The loans will be used to address challenges arising from the economic impact of the COVID- 19 virus outbreak in the country, which began in March.
It was announced in a press release that the International Monetary Fund (IMF) had approved $3. 4 billion in emergency financial assistance under its Rapid Financing Instrument to assist the authorities in addressing the severe economic impact of COVID- 19 shock as well as the sharp decline in oil prices. The loan was approved under the Rapid Financing Instrument.
According to the findings of the audit, only one loan had been disbursed, out of the four loans that had been agreed upon prior to the audit.
Nigeria’ s projected payments to the fund are detailed in a section titled ‘ Overdue Obligations and Projected Payments to Fund, ‘ which includes a breakdown of how much Nigeria is expected to pay to the fund each year.
The Special Drawing Rights included a clause stating how much money was to be paid in exchange for the rights. International reserve asset, the Special Drawing Rights (SDR), was established by the International Monetary Fund (IMF) in 1969 to supplement the official reserves of member countries.
According to the International Monetary Fund’ s official exchange rate, which can be found on its website, an SDR1 is currently worth $1. 39.
Therefore, Nigeria is expected to pay SDR26. 91 million ($37. 40 million) in 2022, which will be used solely to pay back the loan’ s interest.
On an annual basis between 2023 and 2025, Nigeria is expected to pay a total of SDR639. 81 million ($889. 34 million). A principal fee of SDR613. 63 million ($852. 95 million) and an interest fee of SDR26. 18 million ($36. 39 million) are included in this figure, respectively.
Nigeria is expected to pay a total of SDR1. 24 billion ($1. 72 billion) by 2024, a decrease from the previous year. This figure includes SDR1. 23 billion ($1. 72 billion) in principal fees and SDR15. 29 million ($21. 25 million) in interest fees, for a total of SDR1. 23 billion ($1. 72 billion).
By 2025, it is expected that the country will have paid a total of SDR616. 38 million ($856. 77 million) in taxes. This fee is allocated as follows: SDR613. 63 million ($852. 95 million) goes toward the principal fee, and SDR2. 75 million ($3. 82 million) goes toward interest fees.
It is anticipated that an interest fee of SDR0. 28m ($389, 200) will be collected by 2026, which is the smallest amount expected.