The International Monetary Fund (IMF) has confirmed that Nigeria has fully repaid the $3.4 billion emergency loan it received during the COVID-19 pandemic. The loan, disbursed in April 2020 under the Rapid Financing Instrument, was aimed at helping Nigeria navigate the economic challenges posed by the pandemic, including declining oil revenues and a recession. The final repayment was completed on April 30, 2025.
Despite the full repayment of the principal amount, Nigeria will continue to make annual payments of approximately $30 million in Special Drawing Rights (SDR) charges. According to Nigeria’s Debt Management Office, the country spent $4.66 billion on foreign debt servicing in the previous year, with $1.63 billion directed to IMF obligations. This development marks a significant milestone in Nigeria’s economic recovery efforts and reflects the government’s commitment to meeting its international financial obligations.
The repayment is expected to bolster investor confidence and may positively influence Nigeria’s credit ratings. Economic analysts suggest that while the repayment is commendable, Nigeria must continue to implement structural reforms to ensure long-term economic stability and growth. This includes diversifying the economy, improving revenue generation, and managing public expenditures effectively.
