Nigeria on Track to Finish Repaying IMF Loan by 2029, Payment Details Emerge

• The Nigerian government has shown itself faithful in keeping with the repayment terms of its loans
• Checks show that the government has been servicing its IMF loans and is now on track to complete the loan repayment as scheduled
• This comes as a validation of the recent review and upgrade done by Fitch Ratings, to improve Nigeria's rating to a 'B'

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

There may be some fiscal respite ahead for Nigeria, as data shows that the federal government is on track to complete the repayment of the International Monetary Fund (IMF) Rapid Financing Instrument loan by 2029.

IMF published the latest repayment schedule on its website to show the details of this loan.

Nigeria secured approval for an emergency financial support of 2,454.50 million Special Drawing Rights (translating to about $3.32bn at the prevailing exchange rate of SDR1 to $1.35404 as of May 1, 2025).

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The loan was fully disbursed on April 30, 2020, to help address balance of payment needs, amid the devastating economic impacts of the Coronavirus pandemic on global oil prices.

Following the fiscal pressures and obligations to be met, Nigeria secured the facility quickly with repayment to start in 2025 and last till 2029.

While RFI disbursement was rapidly approved, with minimal conditions and without following the traditional IMF processes, repayment terms are considered binding.

This means that Nigeria’s progress in repaying the IMF loan would be interpreted as a positive signal to global investors and development partners, especially after the recent upgrade from Fitch Ratings.

Legit.ng earlier reported that Nigeria successfully serviced loans from the World Bank, the IMF, and China.

IMF confirms payment schedule

Below is the payment schedule.

• 2025 – Nigeria is to repay $446.21 million (equivalent of SDR 329.62 million, comprising a final principal amount of SDR 306.81 million, and interest charges of SDR 22.81 million)
• 2026 to 2029 – Charges and interests amounting to about $36.14 million or SDR 26.7 million each year
• In total, Nigeria will be repaying about SDR 436.42 million or $570.78 million over the next five years.

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IMF: Nigeria’s debt servicing drops after major repayment

It was earlier reported that Nigeria’s debt to the IMF has dropped from $2.47 billion in 2023 to $800.23 million in 2024.

This was said to be connected to the repayments of the emergency and budget-support facilities disbursed in 2020, the PUNCH reports.

Total external debt servicing, however, increased in 2020 to $4.66 billion, from $3.5 billion in 2023, and this included loans to IMF, World bank and others.

Nigeria's debt servicing increases by 33%

Legit.ng earlier reported that Nigeria's external debt servicing grew by 33% year on year.

The analysis showed an increase from $3.5 billion in 2023 to $4.66 billion in 2024, marking about $1.16 billion increase.

DMO data shows that most of the external debt service for 2024 was paid to commercial creditors with $1.47 billion.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng