IMF Speaks on Decision to Remove Nigeria from Debtors’ List of 91 Countries

• The IMF has commented on the decision to remove Nigeria from countries owing the fund after debt payments
• Nigeria fully repaid the $3.4 billion IMF COVID-19 loan obtained under the Rapid Financing Instrument in 2020
• Despite the repayment, Nigeria still owes about $30 million annually for four years in Special Drawing Rights (SDR) charges

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 International Monetary Fund (IMF) has confirmed that Nigeria has fully repaid the $3.4 billion COVID-19 financial support received under the Rapid Financing Instrument (RFI) in April 2020.

The repayment led to the removal of Nigeria from the IMF's list of debtor countries, following the full settlement of its outstanding credit obligations to the Fund.

There have been mixed reactions to the claim of full repayment of the IMF loan, which the presidency has widely celebrated.

The Fund, on Thursday, May 8, in a statement on behalf of the IMF’s Resident Representative for Nigeria, Christian Ebeke, confirmed that the repayment was completed on April 30, 2025.

The IMF stated:

As of April 30, 2025, Nigeria has fully repaid the $3.4 billion it received from the International Monetary Fund (IMF) in April 2020 under the Rapid Financing Instrument, which was granted to cushion the economic impact of the COVID-19 pandemic and the sharp decline in oil prices."

Despite the confirmation, the government is still indebted to the multilateral organisation to the tune of about $30 million, which is the Special Drawing Rights (SDR) charges, DailyTrust reports.

The $30 million is equivalent of N48.2 billion which would be paid annually over four years as charges on the loan. This would amount to over N190 billion.

Data obtained from the IMF’s website indicates that Nigeria’s total charge for 2025 is expected to reach SDR 22.35 million (approximately $30.24 million), with payments scheduled across May, August, and November.

IMF's statement added:

Nigeria is expected to make additional annual payments of approximately $30 million in Special Drawing Rights (SDR) charges.

"In accordance with the IMF’s Articles of Agreement, these charges—calculated at the SDR interest rate, which is updated weekly are applied to the gap between Nigeria’s SDR holdings (SDR 3.16 billion or $4.3 billion) and its total SDR allocation (SDR 4.03 billion or $5.5 billion)."

"The net payment of the charges stops when Nigeria’s SDR holdings reach the cumulative allocation amount.”

The SDRs are supplementary foreign exchange reserve assets defined and maintained by the IMF which represent a claim to currency held by IMF member countries for which they may be exchanged.

Nigeria’s debt to World Bank rises

Earlier, Legit.ng reported that the federal government secured six new loans of about $2.23 billion from the World Bank in 2025.

According to data from the World Bank, the new borrowings would bring Nigeria’s total debt to the World Bank to $9.25 billion in three years, showing a continued dependence on external funding to support critical sectors of the economy.

A breakdown of Nigeria’s loan approvals from the global financial institution since 2023 under President Bola Tinubu shows a significant increase in funding commitments.

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

Source: Legit.ng