Nigeria to Benefit as IMF Approves $45bn for Low, Middle-income Countries
*World Bank increases mineral survey aircraft in South-west
•Survey to be extended to 121 LGAs in 19 states
The International Monetary Fund (IMF) has approved a $45billion trust fund to help low and vulnerable middle-income countries, including Nigeria to build resilience and sustainability.
This is coming as the Mineral Sector Support for Economic Diversification (MinDiver) of the World Bank has increased the number of aircraft conducting Airborne Geophysical Survey in the South-west from two to four to boost mining activities.
The survey would be conducted in 19 states, including FCT across 121 local government areas.
Nigeria is among lower-middle-income countries with a gross national income (GNI) per capita of $2,157 in 2019, according to the World Bank collection of development indicators.
According to the IMF, the fund will come into effect from May 1, 2022.
The fund is part of IMF’s $650 billion special drawing rights (SDRs) issued in August 2021 to vulnerable countries to boost liquidity through Resilience and Sustainability Trust (RST).
The Managing Director of IMF, Kristalina Georgieva, disclosed this in a statement issued in Washington, DC.
Georgieva said the fund would help build resilience against long-term risks to balance payments’ stability.
“I am very pleased to announce that the IMF’s Executive Board today approved the creation of a new Resilience and Sustainability Trust (RST) to come into effect on May 1, 2022,” the statement reads.
“The Trust aims to help low-income and vulnerable middle-income countries address longer-term structural challenges that pose macroeconomic risks, including climate change and pandemics.
“As the world is confronting consecutive global shocks, we must not lose sight of the critical actions needed today to ensure longer-term resilience and sustainability — and we can only succeed by working together.
“The RST will amplify the impact of the $650 billion SDR allocation implemented last year by channelling resources from economically stronger members to countries where the needs are greatest. The aspiration is to build a Trust of at least $45 billion in resources.
“The RST will serve as a third pillar of the IMF’s lending toolkit, in addition to the General Resources Account and the Poverty Reduction and Growth Trust. The RST will provide policy support and affordable longer maturity financing – with a 20-year maturity and a 10½ -year grace period – to help build resilience against long-term risks to balance of payments stability.”
She added that about three-quarters of IMF’s country members will be eligible for RST financing.
“About three-quarters of the IMF’s country members will be eligible for RST financing, including low-income members as well as most middle-income countries and all small developing states. We have worked extensively with our members and other stakeholders to design the RST, to balance the needs of potential contributors and borrowers,” the statement added.
“We have worked extensively with our members and other stakeholders to design the RST, to balance the needs of potential contributors and borrowers. The reforms supported by the Trust are also intended to catalyse increased financing from the private sector, donors, and other international financial institutions (IFIs).
“Close collaboration with the World Bank and other IFIs will be critical for the success of the RST.”
World Bank Increases Mineral Survey Aircraft in South-west
Meanwhile, the Mineral Sector Support for Economic Diversification (MinDiver) of the World Bank has increased the number of aircraft conducting Airborne Geophysical Survey in the South-west from two to four to boost mining activities.
Deputy Coordinator of MinDiver, Dr Abba Usman made this known in an interview with the News Agency of Nigeria (NAN) yesterday in Abuja.
MinDiver is a World Bank project under the Ministry of Mines and Steel Development to enhance the mining sector’s contribution to the economy by strengthening key government institutions.
He said the number of aircraft was increased from the initial two inaugurated by the Minister of Mines and Steel Development, Mr Olamilekan Adegbite, to four to fast track the survey before rains set in properly.
He said that the four aircraft had commenced the search for mineral deposits in Ekiti, Ondo, Oyo, Ogun and Osun, adding that the contractors will move to other states after completion of the four states.
“More aircraft were added because we needed to get accurate minerals available in those states, if rains commence properly, it will disturb the survey, it is meant to be done on dry land,” he said.
He said that the ongoing survey came as a follow up to a similar survey conducted across the country from 2006 to 2011.
“After the interpretation of the survey, some mineral potentiality, especially metallic minerals were discovered and there was a recommendation for another detailed survey to be conducted in 19 states.”
The survey would determine accurate mineral locations using modern-day contemporary aeromagnetic mechanisms.
The aircraft would be flying at a low altitude, 50 meters above ground level, about the height of a 15-storey building.
The survey would be conducted in 19 states including FCT across 121 local government areas.
The states are Kwara, Ekiti, Ondo, Osun, Oyo, Ogun, Ebonyi, Enugu, Cross River, Akwa Ibom, Kaduna, Niger, Kogi, Taraba, Benue, Plateau, Nasarawa, Bauchi and FCT.