(Ecofin Agency) - The Federal government of Nigeria is negotiating a 5-year financing aid of $3.4 billion from the International Monetary Fund (IMF), we learned. The new financing is part of a support mechanism set up by the institution to assist 40 African countries in the fight against the current coronavirus pandemic.

With an oil-dependent economy, Nigeria is suffering a sharp decline in its 2020 growth perspective following the crash in oil prices and the closure of borders that slowed down trade on the international market. The country, which is just recovering from a long sluggish period will experience a contraction by 3.4% this year, according to the IMF.

A few days ago, Ghana secured a record $1 billion from the IMF to deal with the pandemic and if the loan to Nigeria is approved, it would be the largest financing granted to an African country in the fight against covid-19.

According to the IMF, the financing is expected to be discussed by the Executive Board on Tuesday, April 28, 2020. For the time being, the Nigerian authorities have still not publicly confirmed the information.  

Moutiou Adjibi Nourou