The Federal Government of Nigeria has announced the complete repayment of the $3.4 billion loan secured from the International Monetary Fund (IMF) during the COVID-19 pandemic.
The announcement was made by the Minister of Information and National Orientation, Mohammed Idris, following a Federal Executive Council meeting held in Abuja on Monday, May 12, 2025.
The loan was obtained in April 2020 under the IMF’s Rapid Financing Instrument to support Nigeria in addressing the economic challenges caused by the pandemic and the sharp decline in oil prices.
The repayment process began in 2023, with the outstanding debt reducing from \$1.61 billion to $472 million by January 2025, and was finally settled in full by April 30, 2025.
With the completion of the repayment, Nigeria has been officially removed from the IMF’s list of debtor nations. This development enhances the country’s economic credibility on the international stage and is seen as a positive step toward restoring investor confidence.
Despite the full settlement of the principal amount of the loan, Nigeria remains obligated to make annual payments of about $30 million in Special Drawing Rights (SDR) charges.
These charges stem from the difference between Nigeria’s SDR holdings and its cumulative allocation, as outlined by the IMF’s financial regulations.
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cc: Daily Post Ng
