FG Successfully Repays Debt as IMF Removes Nigeria From Updated Debtors' List

• The Nigerian government has repaid its IMF loan, prompting the international body to remove the country from its list of debtors officially
• The loan was disbursed in April 2020 under the Rapid Financing Instrument to help Nigeria manage the economic fallout of the COVID-19 pandemic
• In its latest updated list, Nigeria was not included among the countries indebted to the IMF as of May 7, 2025

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Federal Government of Nigeria has successfully repaid its debt to the International Monetary Fund (IMF), prompting the global financial institution to officially remove Nigeria from the list of countries with outstanding obligations.

This development follows the final repayment of the principal amount of its $3.4 billion loan obtained under the IMF’s Rapid Financing Instrument (RFI).

The loan, disbursed in April 2020, at the peak of the COVID-19 pandemic, was designed to provide emergency support for Nigeria’s battered economy, which at the time faced a sharp decline in oil revenues, rising fiscal deficits, and a looming recession.

Nigeria's last repayment of principal was made on April 30, 2025.

IMF removes Nigeria from debtors' list

IMF's latest records, released on May 7, 2025, showed that Nigeria is no longer on its debtors' list, which includes 91 countries, following the full settlement of the principal.

However, Nigeria still has interest-related charges, including interest and administrative fees, which will continue on an annual basis until 2029.

In total, Nigeria's outstanding charges and interest to the IMF amount to SDR125.99 million.

At an exchange rate of N2,180 per Special Drawing Right (SDR), based on XE currency conversion, this translates to approximately N274.66 billion.

The charges will remain consistent through 2029, with annual payments for each year ranging from SDR 25,912,903 in 2026 and 2027 to SDR 25,924,726 in 2028 and SDR 25,901,079 in 2029.

The charges include Net SDR Charges, GRA Basic Charges, and SDR Assessments.

The term Net SDR Charges refers to the interest and associated fees levied by the IMF on its member countries that have borrowed resources from the IMF, denominated in Special Drawing Rights.

The GRA Basic Charges refer to the standard interest and associated fees applied by the IMF on loans issued from its General Resources Account.

SDR Assessments are annual fees levied by the IMF on its member countries participating in the SDR Department.

The IMF’s removal of Nigeria from its list of debtor countries is seen as a significant step toward improving the country’s credit profile and international financial reputation.

Nigeria's efforts to clear its debts

According to IMF data, Nigeria’s outstanding debt to the fund dropped significantly from $2.47 billion in 2023 to $800.23 million in 2024, before being fully cleared in 2025.

The repayments were part of a broader debt servicing strategy that saw Nigeria spend $4.66 billion on external debt obligations in 2024 alone, an increase of 167% from N2.57 trillion recorded in the previous year.

The increase in debt servicing costs is due to increasing global interest rates and the naira depreciation, which made dollar loans more expensive.

FG spends N13.12 trillion on debt servicing

In a previous report by Legit.ng, the Nigerian government serviced debts with about N13.12 trillion in 2024, representing a 68% increase from N7.8 trillion in 2023.

Data from the Debt Management Office (DMO) showed that debt servicing costs in 2024 exceeded the allocation of N12.3 trillion.

The Nigerian government earmarked N16 trillion for debt servicing, showing its expectation for continued debt-related expenses.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng