Pres. Tinubu Clears $3.4bn IMF Debt, Nigeria Removed Global Debtors List

Nigeria has successfully completed the repayment of a $3.4 billion loan to the International Monetary Fund (IMF), officially removing the nation from the list of debtor nations maintained by the global financial institution.

According to IMF data released on 7th of May 2025, Nigeria no longer appears among the 91 countries with active loan commitments.

This repayment marks a major economic milestone, as it involved clearing the principal from a loan obtained in April 2020 through the IMF’s Rapid Financing Instrument (RFI).

The funds were originally accessed to mitigate the economic fallout of the COVID-19 pandemic, particularly the crash in oil revenues and widening budget deficits.

The final installment was paid on 30th of April 2025.

While the main debt has been repaid, Nigeria is still responsible for ongoing interest and administrative fees, which are scheduled to continue through 2029. These charges total around SDR 125.99 million—approximately ₦274.66 billion at the current exchange rate of ₦2,180 per Special Drawing Right.

Annual payments will range from SDR 25.9 million each year through the end of the payment schedule.

These remaining obligations include interest on borrowed funds (Net SDR Charges), standard interest rates from the IMF’s General Resources Account (GRA Basic Charges), and annual participation fees (SDR Assessments).

The completion of the principal repayment is seen as a positive step in improving Nigeria’s international credit reputation and encouraging investor trust.

Previously, the IMF had disclosed that Nigeria’s outstanding debt to the Fund declined from $2.47 billion in 2023 to $800.23 million in 2024, culminating in full repayment in 2025.

This achievement aligns with Nigeria’s broader external debt servicing efforts, which saw a total of $4.66 billion paid in 2024—representing a 167% increase from ₦2.57 trillion spent the previous year. [CONTINUE READING HERE]>>>>