Nigeria has fully repaid its $3.4 billion International Monetary Fund (IMF) loan

Nigeria Clears $3.4 Billion IMF Pandemic Loan Ahead of Schedule

Nigeria has fully repaid its $3.4 billion International Monetary Fund (IMF) loan, originally secured in 2020 to cushion the economic impact of the COVID-19 pandemic. The repayment, completed on April 30, 2025, came ahead of schedule, signaling improved fiscal discipline and stronger external reserves. The IMF’s Resident Representative in Nigeria confirmed the clearance, though the country will still incur minimal Special Drawing Rights (SDR) charges until 2029.

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Debt-Free: Nigeria Exits IMF Borrower List After Early Repayment

The loan, obtained under the IMF’s Rapid Financing Instrument (RFI), helped Nigeria stabilize its economy during the pandemic by funding healthcare, social support, and critical sectors. With this repayment, Nigeria has exited the IMF’s list of debtor nations, joining a small group of developing economies that have cleared pandemic-related debts. Analysts view this as a strategic move to enhance Nigeria’s credibility with global investors and financial institutions.

The government hailed the repayment as a milestone in fiscal responsibility. O’tega Ogra, a senior aide to President Bola Tinubu, emphasized Nigeria’s shift from dependence to partnership with the IMF. However, challenges remain—Nigeria’s total external debt stands at $44.9 billion, owed to institutions like the World Bank and China’s Exim Bank. Experts urge further reforms in revenue generation, spending efficiency, and infrastructure to ensure long-term debt sustainability.

Nigeria Repays $3.4 Billion COVID-19 IMF Loan, Boosts Investor Confidence

While the early repayment strengthens Nigeria’s economic standing, persistent issues like inflation, unemployment, and exchange rate volatility require attention. The government’s ongoing reforms, including subsidy removal and digital expansion, aim to attract investment and stabilize the economy. Moving forward, Nigeria must balance prudent borrowing with policies that drive inclusive growth for its over 200 million citizens.

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