The International Monetary Fund (IMF) has officially confirmed that Nigeria has fully repaid the $3.4 billion emergency loan it received in April 2020 to mitigate the economic fallout from the COVID-19 pandemic.
The confirmation was issued on Thursday in a statement released on behalf of Mr. Christian Ebeke, IMF Resident Representative for Nigeria. According to the IMF, the final repayment was made on April 30, 2025, marking the full settlement of one of the largest emergency financing arrangements extended under the Rapid Financing Instrument (RFI) during the global crisis.
“As of April 30, 2025, Nigeria has fully repaid the financial support of about US$3.4 billion it requested and received in April 2020 from the IMF 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.
The facility was approved at a time when Nigeria faced the dual shocks of a global health emergency and a steep collapse in international oil prices—its main source of foreign revenue. The funds were deployed to stabilize the economy, support essential fiscal spending, and provide critical healthcare and social safety nets at the peak of the crisis.
While the principal loan has now been fully settled, Nigeria will continue to make annual charges on its Special Drawing Rights (SDRs)—the IMF’s unit of account and international reserve asset.
“Nigeria is expected to honor some additional payments in the form of Special Drawing Rights charges of about US$30 million annually,” the statement added.
These SDR-related charges result from the difference between Nigeria’s current SDR holdings and its cumulative SDR allocation. As outlined by the IMF, such charges—calculated using the weekly-adjusted SDR interest rate—will continue until Nigeria’s SDR holdings (currently SDR 3,164 million or $4.3 billion) align with its cumulative allocation (SDR 4,027 million or $5.5 billion).
For the 2025 fiscal year, Nigeria’s total SDR charges are projected to be SDR 22.35 million, equivalent to $30.24 million, and will be paid in three installments—in May, August, and November.
The conclusion of the COVID-19 loan repayment stands as a key milestone in Nigeria’s debt management efforts. In 2024 alone, the country paid $1.63 billion to the IMF, covering principal obligations on the emergency loan with no additional interest or service charges recorded for that year.
According to the IMF’s financial data, Nigeria’s total external debt servicing rose to $4.66 billion in 2024, up from $3.5 billion in 2023. Multilateral lenders accounted for 56% of this figure, with the IMF alone representing about 35% of total payments.
Economic analysts have hailed the IMF’s confirmation of Nigeria’s full loan repayment as a positive signal to the global financial community. Amid a turbulent macroeconomic landscape shaped by high global interest rates and unstable oil revenues, Nigeria’s ability to meet its debt obligations could enhance its credit standing and improve access to concessional financing in the future.
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