Nigeria has officially settled its $3.4 billion emergency loan obtained from the International Monetary Fund (IMF) during the peak of the COVID-19 crisis. The repayment marks a major step in the country’s financial commitments to the global lender.
According to ThisDay, the IMF confirmed Nigeria’s full repayment of the Rapid Financing Instrument (RFI) disbursed in April 2020 to help offset the economic shock from the pandemic and declining oil prices. However, the country is still expected to pay about $30 million annually in Special Drawing Rights (SDR) charges.
Dr. Christian Ebeke, the IMF Resident Representative in Nigeria, stated: “As of April 30, 2025, Nigeria has fully repaid the financial support of about US$3.4 billion it requested and received in April 2020 from the IMF under the Rapid Financing Instrument.”
These annual charges stem from the difference between Nigeria’s current SDR holdings, valued at approximately $4.3 billion, and its cumulative SDR allocation of around $5.5 billion. The payments are calculated using a variable interest rate that changes weekly.
The IMF has removed Nigeria from its debtor list, which currently includes 91 developing countries owing a combined $117.8 billion as of May 6, 2025.
The IMF also noted recent economic reforms by Nigerian authorities. These include halting deficit financing through the central bank, removing fuel subsidies, and adjusting the foreign exchange market—measures that have improved fiscal discipline and policy transparency.
Despite the positive development, the IMF cautioned that Nigeria’s broader economic outlook remains uncertain, especially with global financial pressures and oil market volatility.
Article updated 1 month ago. Content is written and modified by multiple authors.
