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IMF Releases Nigeria’s Financial Position Report | Citizen NewsNG

ByCitizen NewsNG

Jun 3, 2024

Naira Notes 

 

 

… No Overdue Payments Recorded

 

By Tanko Lami

 

 

The International Monetary Fund (IMF) which offers financial aid to countries in economic distress, has released Nigeria’s financial position report as of April 30, 2024.

According to the latest data from the Fund’s website on Monday, the report reveals that Nigeria has no overdue obligations to the IMF, signaling the country’s consistent fulfillment of its financial commitments to the organization.

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

As a member, Nigeria holds a quota of SDR 2,454.50 million (100% of quota), while the IMF holds SDR 3,183.15 million (155.35% of quota) in currency.

Nigeria’s reserve tranche position, indicating the available funds for immediate use, is currently at SDR 175.47 million (7.15% of quota).

Special Drawing Rights (SDRs), an international reserve asset utilized by the IMF, are not a currency per se but are based on a composite of currencies including the US dollar, euro, Chinese renminbi, Japanese yen, and British pound sterling. This mechanism enables countries to access financial assistance from the IMF during economic crises.

Nigeria has outstanding purchases and loans amounting to SDR 1,534.06 million (62.50% of quota), which includes emergency assistance.

However, the report emphasizes that the country has no overdue obligations to the IMF, demonstrating its commitment to fulfilling its financial responsibilities.

Projected payments to the IMF include principal amounts of SDR 613.63 million due in 2024 and 2025, along with charges and interest ranging from SDR 32.34 million to SDR 78.69 million between 2024 and 2028. These figures outline Nigeria’s future financial commitments 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.”

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