International Monetary Fund (IMF) has concluded that despite the $3.5 billion loan it gave Nigeria to cushion the effects of COVID-19 pandemic in April 2020, socio-economic conditions have worsened.

In a report published, on Monday, on the Article IV Consultation for 2020, which ended on January 27, the Board noted that “Nigeria’s economy has been hit hard by the COVID-19 pandemic. Following a sharp drop in oil prices and capital outflows, real GDP is estimated to have contracted by 3.2 per cent in 2020 amidst the pandemic-related lockdown.

“In April 2020, Nigeria received IMF emergency financial assistance of $3.5 billion under the Rapid Financing Instrument to help cushion the impact of the pandemic.

In a report published, on Monday, on the Article IV Consultation for 2020, which ended on January 27, the Board noted that “Nigeria’s economy has been hit hard by the COVID-19 pandemic. Following a sharp drop in oil prices and capital outflows, real GDP is estimated to have contracted by 3.2 per cent in 2020 amidst the pandemic-related lockdown.

“In April 2020, Nigeria received IMF emergency financial assistance of $3.5 billion under the Rapid Financing Instrument to help cushion the impact of the pandemic.

“Headline inflation rose to 14.9 per cent in November 2020, a 33-month high, reflecting core and food inflation increases emanating from supply shortages due to the lockdown effected to curb infections alongside, the land-border closure and continued import restrictions.

“The unemployment rate reached 27 per cent in the second quarter of 2020, with youth unemployment at 41 per cent.

“External vulnerabilities due to lower oil prices and weak global demand have increased, with the current account remaining in deficit in the first half of 2021,” the Fund noted.

It, however, commended government for acting swiftly to adopt a pandemic-related support package equivalent to 0.3 per cent of GDP in the 2020 revised federal budget despite limited fiscal space.

At the last Monetary Policy Committee (MPC) meeting, Central Bank of Nigeria (CBN) admitted that the 0.3 per cent of GDP COVID-19 stimulus package was abysmally little and said it would provide more.

Looking ahead, IMF directors emphasised the need for urgent policy adjustment and more fundamental reforms to sustain macroeconomic stability and lift growth and employment.

While welcoming removal of the fuel subsidy and steps to implement cost-reflective tariff increases in the power sector, the directors “stressed the need for significant revenue mobilization to reduce fiscal sustainability risks, relying initially on progressive and efficiency-enhancing measures with higher tax rates awaiting a more sustained economic recovery.”

They highlighted the need for improved social safety nets to cushion potential negative impacts on the poor.

The recommended gradual and multi-step approach to establishing a unified and clear exchange rate regime with the near-term focus on allowing for greater flexibility and removing the payments backlog.

“Directors observed that the accommodative monetary stance remains appropriate in the near term, although tightening may be warranted if the balance of payments or inflationary pressures were to increase.

“In the medium term, the monetary policy operational framework should be reformed and Central Bank financing of budget deficit phased out in order to reduce inflation.

“While welcoming the resilience of the banking sector, Directors called for continued vigilance to contain financial stability risks.

“They noted that COVID-19 debt relief measures for bank clients should remain time-bound and limited to those with good pre-crisis fundamentals.

“Directors welcomed recent progress in structural reforms and called for continued reforms aimed at promoting economic diversification and reducing the dependence on oil and increasing employment.

“In addition, they encouraged strengthening governance and anti-corruption frameworks, including compliance with AML/CFT measures.”

More Nigerians have continued to test positive for COVID-19 and more deaths have been recorded from its complications, Tribune Online analysis shows.

However, Nigeria recorded fewer COVID-19 infections and deaths when compared to the previous week. It also recorded increased recoveries during the same period…Despite loans, Nigeria’s socio-economic conditions deteriorated ― IMF

Despite loans, Nigeria’s socio-economic conditions deteriorated ― IMF

https://tribuneonlineng.com/despite-loans-nigerias-socio-economic-conditions-deteriorated-―-imf/

Buhari's voodoo economics @ work.Chronic borrowing does never translate to development especially in a corruption ridden country like Nigeria who have super looters in government.

No thanks to Buhari/APC

Meanwhile, I'm tempted to end my life because of debt of N65,000. It may not be a big sum but if you don't have, it means you don't have. I'm depressed and suicidal. Who can help please?

Trillions of loans collected by this government with nothing to show for it .

Nigeria became The poverty capital of The world under this APC fulani regime .

I don't blame this corrupt elements parading themselves as leaders, I blame the oppressed who reinforced this calamity of a government .

Nigeria Loan mata be like person wey go colet Lapo instead make he use am boost him business he use am go dey buy food stuff for house dey embezzle am...

Nigeria nor Follow

Loans are conduit of money laundering in Nigeria...

Let me use this golden opportunity to greet our south west brothers...... Una well done ooooo

Ok

looted loans

Ok

lack of economy activities from the masses are the cause of the downturn of the Nigerian economy

MOST NIGERIANS ARE UNPRODUCTIVE, THEY ARE ONLY PRODUCTIVE IN COMPLAINING AND ABUSE

Buhari has never been a good economy manager, right from 1983 to date....his cow business never increases till date.....He failed then as a head of state, still failing now as a president, he is synonymous with failures.

pls come and answer.

Where's the stupid heluines oya come defend o

Failed government. They will blame PDP and cryptocurrency except themselves

200 million people are citizens of Nigeria according to estimated figure. Some of these people are useless, some want to be useful but they don't know how. My pain is that the government job is to make useless people useful, or unscrupulous element will find a way to engage them.

There are so many people just existing because they have no roadmap for the future, people with limited imagination who will go with whatever, Use people, don't just accumulate thousands of friends, use them to advance your own purpose.

I see many people willing to be used in this country, people who will gladly follow a leader than to lead,
people need a leader to follow, some body who will lead them to the promise Land.

Designsking:
Human capital, not money is our core problem.

You don't start a Business with Billions, you start small with the Big Picture in mind to help you put your Leadership capacity to test first before investing Big. No matter how much money at your disposal

And Nigeria has failed to realize money is not her problem, but lack of idea. It seems most of our Leaders are creative only when it comes to looting than Human capital development. Which is the number was Demon we are fighting with after lack of will

I learnt a lot in your second paragraph.

Thanks for the observation

Nigeria’s Socio-COW-Economic Conditions are doing well that's what matters.

Because Some People Sit Down And Open Mouth for All The Loans To Enter

Is now very clear even for those that are


blind by sentiment, that this government has no solutions to the country challenges.

Nigeria is run by literal satanists. The evil is unthinkable. The atrocities committed by those the public loves and respects are immense. Everything the public has been made to believe for generations is false. All Nigeria politicians don't care about Nigerians welfare they like seeing them miserable

Until politics stops being the easiest way to make wealth in our country, stealing will continue. Nigeria will never be a good country

This people don't care about the masses welfare

They are looking for huge fund to rig 2023 elections

Best things for normal Nigerians that value their destiny and dreams is to run away and change citizenship