Why We Approved $288.5m Loan to Help Nigeria Tackle COVID-19 Pandemic – African Development Bank

 59 total views,  2 views today

Why We Approved $288.5m Loan to Help Nigeria Tackle COVID-19 Pandemic - African Development Bank

African Development Bank Board of Directors has explained why it approved a $288.5 million loan to help Nigeria tackle the novel Coronavirus (COVID-19) pandemic and mitigate its impact on people and businesses.

The bank said the loan would bolster the government’s plans to improve surveillance and response to COVID-19 emergencies, ease the impact on workers and businesses and strengthen the social protection system.

The loan was also described as the bank’s initial response to help mitigate the slump in oil prices and its impact on the national economy.

Also See: Top 10 Profitable Business That Can Make You a Millionaire in 3 Months

“The proposed programme 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,” said Senior Director of the African Development Bank for Nigeria, Ebrima Faal.

Faal said beyond the country’s immediate economic recovery needs, the bank and other development partners, would dialogue with the government on proposals for medium-term structural reforms to diversify and boost domestic revenues away from the oil sector.

He said the bank has instituted strong fiduciary measures to monitor the use of COVID-19 funds, and would maintain dialogue, particularly with the Office of the Auditor General in Nigeria, to ensure adherence to the transparency and accountability of the funds.

Nigeria, Africa’s most populous nation and the continent’s largest oil producer, is facing twin crises – a health epidemic caused by COVID-19, and an economic crunch largely occasioned by a global oil price plunge. As of June 6, the country reported 12,233 Coronavirus cases, 3,826 recoveries and 342 deaths.

About 40.1 per cent of Nigerians live below the poverty line of $1.90 per day and it’s feared that the fall in household income during the pandemic would result in wealth deterioration for both the formal and informal sector workers.

Prior to 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. But with the advent of the pandemic and the slump in crude prices, 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.

The bank’s intervention aligns with its COVID-19 Response Facility (CRF); Ten-Year Strategy (2013-2022); and High 5 priorities, especially “Improve the quality of life for the people of Africa.” It’s also consistent with the second strategic pillar of the recently approved bank’s Country Strategy Paper 2020-2024 for Nigeria.

Please drop your thoughts in the comment box below and help us grow by share this post with someone.

Follow us on Facebook, Instagram & Twitter to keep up to date with trending news as it happens.

Why We Approved $288.5m Loan to Help Nigeria Tackle COVID-19 Pandemic - African Development Bank
Why We Approved $288.5m Loan to Help Nigeria Tackle COVID-19 Pandemic - African Development Bank
We do love you to connect with us on telegram, get the latest updates at your finger tip

admin

Professional freelancer and webmaster.

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Diezani Allison-Madueke is Now Commissioner for Trade and Investment in Dominican Republic

Sun Jun 7 , 2020
 60 total views,  3 views today We all remember Nigeria’s former Minister of Petroleum Diezani Allison-Madueke, right, well she has just been appointed Commissioner for Trade and Investment in Dominican Republic. Diezani Allison-Madueke, was issued a diplomatic passport: DP0000445 by the Dominican Government on May 21, 2015 shortly before the handover to […]

News Around the Globe

HOT ON THIS BLOG

%d bloggers like this: