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Friday, May 16, 2025

Nigeria completes $3.4 billion IMF loan repayment, exits debtor list

Bola Tinubu is Nigeria's President Bola Tinubu is Nigeria’s President

Nigeria has officially cleared its $3.4 billion emergency loan from the International Monetary Fund (IMF) joining a select group of nations free from IMF debt.

The repayment, completed ahead of schedule on April 30, 2025, highlights Nigeria’s commitment to fiscal responsibility and is seen as a major step toward strengthening global investor confidence.

The loan secured in April 2020 under the IMF’s Rapid Financing Instrument, provided critical support during the economic challenges of the COVID-19 pandemic.

With the principal now fully repaid, Nigeria will continue making annual payments of approximately $30 million in Special Drawing Rights (SDR) charges until 2029.

This milestone has led to Nigeria’s removal from the IMF’s list of debtor nations, a development expected to boost the country’s position in negotiations with global financial institutions and investors.

However, despite this achievement, Nigeria still faces considerable economic hurdles, including a total external debt of $44.9 billion as of December 2024.

SP/SA

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