Nigeria Clears $3.4 Billion IMF Loan — Exits List of Indebted Nations After Landmark Repayment

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ABUJA, May 9, 2025 — In a major milestone for Nigeria’s economic outlook, the International Monetary Fund (IMF) has officially removed Nigeria from its list of debtor countries following the full repayment of a $3.4 billion emergency loan obtained during the COVID-19 pandemic.

This repayment, finalized on April 30, 2025, marks a historic moment as Nigeria becomes one of the first African nations to fully settle its pandemic-era obligations to the global lender. The loan was originally granted under the IMF’s Rapid Financing Instrument (RFI) in April 2020 to cushion the economic shocks caused by the pandemic-induced global shutdown.

An IMF spokesperson confirmed the repayment and praised Nigeria’s fiscal discipline, stating, “Nigeria’s full repayment of the $3.4 billion COVID-19 loan demonstrates a strong commitment to responsible financial management and strengthens investor confidence.”

According to financial experts, the repayment signals renewed credibility for Nigeria in international markets and could enhance the country’s credit rating and future access to concessional borrowing. However, the country is not entirely off the hook. Nigeria is still required to pay an annual charge of approximately $30 million in Special Drawing Rights (SDR) to the IMF — standard administrative costs tied to the original loan structure.

Despite this obligation, economic analysts say the repayment is a step in the right direction. “It’s not just about paying off debt,” said Dr. Ayo Adedeji, a Lagos-based economist. “It’s about restoring global confidence in Nigeria’s economic management.”

The repayment comes amid ongoing reforms by the Nigerian government aimed at cutting subsidies, strengthening tax revenue, and improving transparency in public spending.

Nigerians have reacted with mixed emotions. While some hail it as a win for national pride and sovereignty, others urge the government to now focus more aggressively on domestic debt, inflation, and the rising cost of living.

Still, with Nigeria officially no longer on the IMF’s debtor list, the global economic community is watching closely to see how Africa’s largest economy builds on this fiscal breakthrough.