Finally, Nigeria repays IMF 3.4bn loan, free from debts

Eric Patrick 

The International Monetary Fund has announced that Nigeria has finally repaid the entire $3.4 billion it received through the Rapid Financing Instrument, which was designed to mitigate the economic effects of the COVID-19 pandemic.

In a statement sent to journalists on Thursday on behalf of Mr Christian Ebeke, the IMF Resident Representative for Nigeria, the Fund said the repayment was completed on April 30, 2025.

The loan, disbursed in April 2020, was aimed at helping Nigeria address a sharp fall in oil prices, economic contraction, and fiscal pressures caused by the pandemic.

“As of April 30, 2025, Nigeria has fully repaid the financial support of about $3.4bn it requested and received in April 2020 from the International Monetary Fund under the Rapid Financing Instrument to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices,” the IMF stated.

However, despite the full settlement of the principal, Nigeria will still uphold its commitment to make additional annual payments associated with Special Drawing Rights charges.

The Fund noted that the country is expected to make annual payments of about $30m in SDR-related charges over the next few years.

According to the IMF, the charges are tied to the difference between Nigeria’s SDR holdings, which currently stand at SDR 3,164m ($4.3bn), and its cumulative SDR allocation of SDR 4,027m ($5.5bn).

The charges are levied at the SDR interest rate, which is updated weekly, and will continue until Nigeria’s SDR holdings match the cumulative allocation amount.

The statement said, “Nigeria is expected to honour some additional payments in the form of Special Drawing Rights charges of about $30m 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) ($4.3bn) and its cumulative SDR allocation (SDR 4,027 million) ($5.5bn).

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

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