The International Monetary Fund (IMF) has clarified that while Nigeria has made significant progress in settling its financial obligations, reports claiming the country has fully repaid its debts are inaccurate.
- The IMF clarified that while Nigeria has repaid its $3.4 billion emergency loan, reports of full debt repayment are inaccurate.
- Nigeria has an outstanding annual service fee of $30 million in Special Drawing Rights (SDR) related to its financial commitments.
- Nigeria’s repayment was confirmed by the country’s Finance Minister and reflected in the IMF’s debtor list update.
The IMF noted that although Nigeria has met part of its repayment obligations, a $30 million annual service fee remains outstanding, highlighting the country’s continued financial commitments despite broader repayment progress.
Nigeria, Africa’s fourth-largest economy, repaid a $3.4 billion emergency loan borrowed from the International Monetary Fund (IMF) under the Rapid Financing Instrument (RFI), which was accessed in 2020 to cushion the economic impacts of the COVID-19 pandemic.
The country’s Finance Minister Wale Edun confirmed via text message on Thursday that Nigeria had repaid the loan in full, adhering to the agreed terms.
Further confirmation of Nigeria’s loan repayment came from the IMF’s report ‘Total IMF Credit Outstanding – Movement from May 01, 2025 to May 06, 2025, which indicated Nigeria’s removal from the list of debtor countries on the institution’s website.
On the list, the West African nation was not among the global financial institution’s debtors. The list included 91 developing and least developed countries that owed the Fund a total of $117,797,656,224 as of May 6, 2025.
IMF clarifies Nigeria’s status
Following the development, IMF Resident Representative in Nigeria, Dr. Christian Ebeke, highlighted the fulfillment requirements for loan accounting under the Fund’s Rapid Financing Instrument, which provides emergency balance of payments support to member countries.
He noted an additional annual charge of approximately $30 million in Special Drawing Rights (SDR) fees that Nigeria is required to pay.
“Nigeria is expected to honor some additional payments in the form of Special Drawing Rights charges of about US$30 million 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) (US$4.3 billion) and its cumulative SDR allocation (SDR 4,027 million) (US$5.5 billion)”
Notably, Nigeria’s total SDR charges for 2025 are expected to reach SDR 22.35 million (approximately $30.24 million), with payments scheduled for May, August, and November.
Olamilekan Okebiorun
