Nigeria has officially completed the full repayment of its US$3.4 billion emergency loan from the International Monetary Fund, originally secured in April 2020 to cushion the devastating economic impact of the COVID-19 pandemic and the collapse in global oil prices.
The IMF confirmed that the final installment was paid on April 30, 2025, and noted that this milestone reflects Nigeria’s continued commitment to fiscal responsibility and its ability to honor international debt obligations, even amid ongoing economic challenges.
While the principal has been settled, Nigeria will continue to make annual payments of approximately US$30 million in Special Drawing Rights (SDR) charges until its reserve holdings match the total allocation, as outlined by the IMF's current financial policy.
According to recent figures, Nigeria paid over US$1.6 billion toward the loan in 2024 alone, contributing to a total external debt service of US$4.66 billion for the year—where the IMF accounted for 35% of the total amount.
Economic analysts say this repayment not only signals improved debt management but could enhance Nigeria’s credibility in global financial markets and unlock future access to concessional financing, marking a significant step forward in the country’s post-pandemic economic recovery.
