The board of governors of the International Monetary Fund (IMF) has approved the allocation of $3.35 billion to Nigeria as part of a historic general allocation of Special Drawing Rights (SDRs).
“The largest allocation of Special Drawing Rights (SDRs) in history—about US$650 billion—comes into effect today. The allocation is a significant shot in the arm for the world and, if used wisely, a unique opportunity to combat this unprecedented crisis.” the statement read. The goal of the allocation is to boost global liquidity amidst the coronavirus-induced economic shock.
According to the IMF Managing Director, Kristalina Georgieva, the SDRs will be distributed to countries in proportion to their quota shares in the IMF. This means about $275 billion is going to emerging and developing countries, of which low-income countries will receive about US$21 billion – equivalent to as much as 6 percent of GDP in some cases.
Although the technicalities of Nigeria’s allocation are yet to be discussed, much is expected for the West African nation’s push for economic recovery.