IMF lists outstanding charges to be paid as Nigeria clears $3.4 billion COVID-19 loan

• Nigeria was recently reported to have repaid debts owed to China, the World Bank, and the IMF
• The latest payment completes the principal on the $3.4 billion COVID-19 loan secured in 2020
• However, the IMF has stated that there are still additional annual repayments to be paid till 2029

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

It is confirmed that Nigeria has cleared the $3.4 billion loan secured in 2020 to mitigate the effects of the Coronavirus pandemic and the sharp drop in crude oil prices on the Nigerian economy.

However, the International Monetary Fund (IMF) has noted that there are still additional payments to be made.

The IMF clarified that while Nigeria has repaid the principal sum, it does not mean the country is removed from the IMF debtor list, as additional payments remain.

IMF speaks on additional payments

The IMF confirmed in a statement released Thursday that Nigeria has fully repaid the $3.4 billion loan received under the Rapid Financing Instrument (RFI) in April 2020.

The statement noted that the additional payments to be paid are denominated in Special Drawing Rights or SDR (an international reserve asset used by IMF) and can be converted to either US dollars, Euro, Chinese renminbi, Japanese Yen or British Pound Sterling.

In 2023, Nigeria repaid SDR613.62 million. In 2024, SDR1.22 billion was repaid, and in 2025, another SDR613.62 million has been repaid to complete the principal.

The charges or interest on the loan (known as cost of borrowing) are also expressed in SDR, and the IMF statement detailed what it translates to.

It reads;

“Nigeria is expected to honor additional payments in the form of Special Drawing Rights charges of about US$30 million annually.

“In line with the IMF’s Articles of Agreements, these charges, levied at the SDR interest rate, which is updated at the beginning of each week, apply to the difference between Nigeria’s SDR holdings (SDR 3,164 million) (US$4.3 billion) and its cumulative SDR allocation (SDR 4,027 million) (US$5.5 billion).”

The IMF statement concluded that the net payment of the charges stops when Nigeria’s SDR holdings reach the cumulative allocation amount.

Nigeria to make annual payments for 4 years

Legit.ng earlier reported that 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.

IMF confirms date Nigeria will clear debt

In related news, the IMF has confirmed that Nigeria is scheduled to complete its repayment by 2029.

From 2026 to 2029, Nigeria will pay charges and interests amounting to about $36.14 million or SDR 26.7 million annually.

In total, Nigeria will be repaying about SDR 436.42 million or $570.78 million over the next five years.

Source: Legit.ng