Nigeria Clears $3.4bn COVID-19 Loan, Boosts Global Debt Credibility
Samuel Mobolaji
Nigeria has fully repaid the $3.4 billion emergency loan it secured from the International Monetary Fund (IMF) at the height of the COVID-19 pandemic, reinforcing its commitment to responsible debt management amid ongoing economic pressures.
The IMF, in a statement issued on behalf of its Resident Representative for Nigeria, Mr Christian Ebeke, confirmed that the final repayment under the Rapid Financing Instrument (RFI) was completed on April 30, 2025. The facility, disbursed in April 2020, was one of the largest granted globally under the RFI and was aimed at cushioning the sharp economic downturn triggered by collapsing oil prices and the pandemic’s fiscal toll.
Despite the full settlement of the principal, Nigeria will continue to make annual Special Drawing Rights (SDR) charges of about $30 million. These are linked to the difference between Nigeria’s SDR holdings and its cumulative allocation. According to the IMF, these charges—calculated weekly—will cease once Nigeria’s SDR holdings match its total allocation.
IMF data show that Nigeria’s charges for 2025 are expected to total SDR 22.35 million (about $30.24 million), with payments spread across three instalments in May, August, and November.
The IMF loan repayment marks a significant milestone for Nigeria, following a sharp rise in external debt servicing in 2024. Payments to the IMF alone reached $1.63 billion last year, entirely made up of principal, while total external debt servicing rose to $4.66 billion, up from $3.5 billion in 2023. Multilateral creditors accounted for 56 per cent of this total, with the IMF responsible for around 35 per cent.
The successful closure of the IMF loan underscores Nigeria’s efforts to maintain international financial credibility as it navigates complex economic headwinds.
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