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Reasons Buhari plans To Borrow $30 Million From IMF

As President Buhari borrows Loans from different international communities, people are worried that the economy of the country would experience a big blow due to the side effects of excessive incurred debts.

Despite the public outcry against borrowing more loans from the international community, the Nigerian government had announced that

it would meet the international monetary fund ( IMF) to acquire the sum thirty million dollars ($30 million) loan.

This announcement was made by the vice president of Nigeria, Yemi Osinbajo, who represented President Buhari in Jos, Plateau State

during the graduation of Senior Executive Course 43 participants of the National Institute for Policy and Strategic Studies.

Previously, the world Bank explained that the economic situation in Nigeria would worsen if the government don’t make good policies to stabilise it’s GDP.

According to the reports from Sahara reporters, the Muhammadu Buhari’s Government are still on the negotiation stage with the IMF for the $ 30 million dollar loan and the government plans to use it to construct a Vaccine factory in the country.

The announcement by the Nigerian Vice President on behalf of Buhari pointed out that the Vaccine plant would be Jointly constructed with May & Bakers Nigerian PLC company and hopefully, the construction would commence in 2022.

The proposed name for the Vaccine factory would be ” Biovaccine Nigeria limited”, although some changes might be made to it after the construction of the plant.

As soon as the IMF approves the $30 million dollar loan for the Nigerian government, the Vaccine factory has been scheduled to commence at the first quarter of 2022.

After the completion of the factory, the Nigerian government would own Forty-Nine percent (49%) of the it while May & Bakers Nigerian PLC would own 51% of it.

According to the President, raw materials required by the Vaccine plant would be provided through importation before full scale production starts.

President Buhari explained that this move is to ensure the successful fight against the negative effects of the Covid-19 on the Nigerian economy.

Nigeria already has an accumulated debt of 33 trillion Naira and this according to economic analysts would pull the Nigerian economy down and have a negative impact on the strength of the Nigerian Naira.

The economy of Nigeria is currently under pressure and this explains the level of inflation, devaluation of the currency and the terrible foreign exchange between the Dollar and Nigerian Naira.

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