The Federal Government of Nigeria has successfully completed the repayment of its $3.4 billion loan to the International Monetary Fund (IMF), officially removing the country from the IMF’s list of indebted nations.
As of May 7, 2025, updated IMF records confirm that Nigeria no longer appears among the 91 countries with pending loan balances. This milestone stems from the full repayment of the principal amount borrowed in April 2020 via the Rapid Financing Instrument (RFI). The emergency facility was secured at the height of the COVID-19 crisis to help Nigeria manage the economic fallout from collapsing oil prices and widening fiscal gaps.
The final installment of the loan principal was paid on April 30, 2025.
Despite settling the main debt, Nigeria is still responsible for annual interest and administrative fees on the loan until 2029. These residual payments total SDR 125.99 million, which is roughly N274.66 billion at the prevailing exchange rate of N2,180 per Special Drawing Right (SDR). The country will make yearly payments ranging between SDR 25.9 million from 2026 to 2029.
These remaining obligations include standard interest and service charges from the IMF’s General Resources Account (GRA), net SDR charges, and annual participation fees.
This debt clearance is being hailed as a positive move for Nigeria’s global financial reputation, signaling improved fiscal discipline and likely boosting investor trust.
IMF data had previously shown Nigeria reducing its debt to the Fund from $2.47 billion in 2023 to $800.23 million in 2024 before fully repaying it in 2025.
As part of broader debt servicing efforts, Nigeria spent $4.66 billion on external obligations in 2024—a 167% surge compared to the N2.57 trillion spent in the previous year.