The impact is to help Nigeria in addressing its economic impact caused by coronavirus.
The Executive Board of the International Monetary Fund has reportedly approved a $3.4bn loan for Nigeria.
The approval was granted on Tuesday, according to local media reports in Nigeria.
The IMF says the loan request was approved to help the country address the economic impact of the COVID-19, according to reports.
The IMF announced the granting of the approval in a press statement, Nigerian media report.
According to the statement, “The Executive Board of the International Monetary Fund (IMF) approved Nigeria’s request for emergency financial assistance of SDR 2,454.5 million (US$ 3.4 billion, 100 percent of quota) under the Rapid Financing Instrument (RFI) to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic.”
“The near-term economic impact of COVID-19 is expected to be severe, while already high downside risks have increased. Even before the COVID-19 outbreak, Nigeria’s economy was facing headwinds from rising external vulnerabilities and falling per capita GDP levels.”
“The pandemic—along with the sharp fall in oil prices—has magnified the vulnerabilities, leading to a historic decline in growth and large financing needs.”