The African Development Bank has approved $288.5m loan to help Nigeria tackle the COVID-19 pandemic and mitigate its impact on the economy.
The loan, according to the development finance institution, will 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 is the bank’s initial response to help mitigate the slump in oil prices and its impact on the national economy.
Nigeria had in April secured $3.4bn from the International Monetary Fund in emergency financial assistance under the fund’s Rapid Financing Instrument to support government’s efforts in addressing the severe economic impact of the COVID-19 economic shock and the drastic fall in oil prices.
“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,” Ebrima Faal, the bank’s Senior Director for Nigeria, said.
The bank said its active portfolio in Nigeria as of December 2019 comprised 61 operations, with a total commitment of about $5bn.
These active operations include 29 in the public sector, with a commitment of $2bn (43%) and 32 non-sovereign operations with a total commitment of $3bn, equivalent to 57 per cent of the total portfolio.