Nigeria Has Been Meeting its Financial Commitments - IMF

The International Monetary Fund, an international organisation that provides financial assistance to countries facing economic difficulties, has released Nigeria’s financial position report as of April 30, 2024.

This is according to the latest data on the Fund’s website on Monday.

The report shows that Nigeria has no overdue obligations to the fund, indicating that the country has been meeting its financial commitments to the IMF.

Nigeria joined the IMF on March 30, 1961, under Article XIV, which outlines the country’s membership status and obligations.

As a member, Nigeria has a quota of SDR 2,454.50 million (100 per cent of quota), with the IMF holding SDR 3,183.15 million (155.35 per cent of quota) in currency.

The reserve tranche position, which represents the amount of funds Nigeria has available for immediate use, stands at SDR 175.47 million (7.15 per cent of quota).

Special Drawing Rights, an international reserve asset used by the IMF, is not a currency but is based on a basket of currencies, including the US dollar, euro, Chinese renminbi, Japanese yen, and British pound sterling. This allows countries to borrow funds from the IMF in times of economic need.

Nigeria has outstanding purchases and loans totalling SDR 1,534.06 million (62.50 per cent of quota), including emergency assistance.

However, the report highlights that the country has no overdue obligations to the IMF, demonstrating its commitment to meeting its financial obligations.

Projected payments due to the IMF include principal amounts of SDR 613.63 million in 2024 and 2025, and charges/interest ranging from SDR 32.34 million to SDR 78.69 million between 2024 and 2028. This indicates Nigeria’s future financial obligations to the IMF.

Economic expert, Shadrach Israel, noted that “this report demonstrates Nigeria’s commitment to meeting its financial obligations to the IMF, avoiding any overdue payments.

“The country’s membership status, quota, and reserve tranche position highlight its financial commitment to the IMF, while the use of Special Drawing Rights facilitates borrowing and financial assistance.”

June 04, 2024