Nigeria Clears $3.4 Billion IMF Debt Early, Enhancing Global Investor Trust
Nigeria has fully repaid its $3.4 billion emergency loan from the International Monetary Fund (IMF), positioning itself among a select group of countries free from IMF debt. The repayment, completed ahead of schedule on April 30, 2025, underscores Nigeria’s commitment to fiscal responsibility and has been lauded as a significant step toward bolstering global investor confidence.
The loan, secured in April 2020 under the IMF’s Rapid Financing Instrument, was instrumental in helping Nigeria navigate the economic challenges posed by the COVID-19 pandemic. With the principal amount now cleared, Nigeria will continue to make annual payments of approximately $30 million in Special Drawing Rights (SDR) charges until 2029.
This development has led to Nigeria’s removal from the IMF’s list of debtor nations, a move that is expected to enhance its standing in future negotiations with global financial institutions and investors. However, while this repayment marks a positive milestone, Nigeria still faces significant economic challenges, including a total external debt of $44.9 billion as of December 2024.
