The International Monetary Fund (IMF) has established a $45 billion trust fund to assist low- and middle-income nations, such as Nigeria, in developing resilience and sustainability.
This comes as the World Bank’s Mineral Sector Support for Economic Diversification (MinDiver) has boosted the number of aircraft conducting Airborne Geophysical Surveys in the South-West from two to four in an effort to stimulate mining activity.
The study will be conducted in 121 local government districts in 19 states, including the FCT.
According to the World Bank’s collection of development indicators, Nigeria is among the lower-middle-income countries, with a GNI per capita of $2,157 in 2019.
The fund will go into effect on May 1, 2022, according to the IMF.
The fund is part of the IMF’s $650 billion special drawing rights (SDRs) program, which was launched in August 2021 to help weak nations raise liquidity (RST).
Kristalina Georgieva, the IMF’s Managing Director, made the announcement in a statement released in Washington, DC.
The fund, according to Georgieva, will assist create resilience against long-term threats to balance-of-payments stability.
The announcement adds, “I am extremely delighted to report that the IMF’s Executive Board today approved the creation of a new Resilience and Sustainability Trust (RST) to take effect on May 1, 2022.”
“The Trust aspires to assist low-income and vulnerable middle-income nations in addressing longer-term structural concerns, such as climate change and pandemics, that pose macroeconomic risks.”
“As the globe faces a series of global shocks, we must not lose sight of the vital actions that must be taken now to ensure long-term resilience and sustainability – and we can only achieve if we work together.”
“By channeling funding from economically stronger members to countries with the greatest needs, the RST will increase the impact of the $650 billion SDR allocation established last year.” The goal is to create a Trust with at least $45 billion in assets.
“In addition to the General Resources Account and the Poverty Reduction and Growth Trust, the RST will serve as a third pillar of the IMF’s loan arsenal.
The RST will help create resilience against long-term risks to balance of payments stability by providing policy support and inexpensive longer-term financing (with a 20-year maturity and a 10-year grace period).
RST money will be available to around three-quarters of the IMF’s countries members, she noted.
“Roughly three-quarters of the IMF’s country members, including low-income members, most middle-income countries, and all small developing states, will be eligible for RST financing.” The RST was designed in collaboration with our members and other stakeholders to balance the demands of potential contributors and borrowers, according to the statement.
“In designing the RST, we worked closely with our members and other stakeholders to strike a balance between the demands of potential contributors and borrowers.
The Trust’s reforms are also aimed at attracting more funding from the private sector, donors, and other international financial organizations (IFIs).
“For the RST to succeed, close engagement with the World Bank and other IFIs will be vital.”
The World Bank is increasing the number of mineral survey aircraft in the south-west.
In the meantime, the World Bank’s Mineral Sector Support for Economic Diversification (MinDiver) has expanded the number of aircraft conducting Airborne Geophysical Surveys in the South-West from two to four in order to enhance mining activity.
Dr Abba Usman, MinDiver’s Deputy Coordinator, stated this in an interview with the News Agency of Nigeria (NAN) on Saturday in Abuja.
MinDiver is a World Bank project run by the Ministry of Mines and Steel Development to strengthen critical government institutions and increase the mining sector’s contribution to the economy.
He said the number of planes was raised from the first two, which were launched by Mr Olamilekan Adegbite, Minister of Mines and Steel Development, to four to expedite the survey before the rains arrived.
He said the four planes had started looking for mineral reserves in Ekiti, Ondo, Oyo, Ogun, and Osun, and that the contractors would move on to other states once the four states were completed.
“More planes were added since we needed correct minerals available in those states,” he explained. “If rains begin properly, it would disrupt the survey; it is supposed to be done on dry land,” he added.
He explained that the current poll is a continuation of a previous survey that was conducted across the country from 2006 to 2011.
“After the survey was interpreted, considerable mineral promise, particularly metallic minerals, was recognized, and a recommendation was made for a more extensive study to be done in 19 states.”
Using modern-day contemporary aeromagnetic techniques, the survey would determine precise mineral locations.
The plane would be flying at a low altitude of 50 meters above ground level, or around 15 stories high.
The study will be conducted in 121 local government districts in 19 states, including the FCT.
Kwara, Ekiti, Ondo, Osun, Oyo, Ogun, Ebonyi, Enugu, Cross River, Akwa Ibom, Kaduna, Niger, Kogi, Taraba, Benue, Plateau, Nasarawa, Bauchi, and the Federal Capital Territory are the states.
