Has Nigeria Really Repaid Its IMF Loan?
Read Time:1 Minute, 48 Second
The International Monetary Fund (IMF) has clarified that although Nigeria has repaid a $3.4 billion emergency loan obtained in 2020, claims that the country has fully settled its debt obligations are inaccurate.
The Fund disclosed that Nigeria still owes approximately $30 million in annual service fees under the Special Drawing Rights (SDR) framework.
Nigeria, Africa’s largest economy by population and the fourth-largest by GDP, accessed the IMF’s Rapid Financing Instrument (RFI) in 2020 to mitigate the economic fallout from the COVID-19 pandemic.
The repayment of the loan, made under agreed terms, was confirmed by Nigeria’s Finance Minister, Wale Edun. The IMF also reflected the repayment in its latest report, “Total IMF Credit Outstanding – Movement from May 01, 2025 to May 06, 2025”, which shows Nigeria is no longer listed among debtor countries.
The updated IMF debtor list, which includes 91 developing and least developed nations owing a combined $117.8 billion as of May 6, 2025, now excludes Nigeria.
Read: Why Kenya Is Rejecting IMF Loans and Choosing the World Bank
However, IMF Resident Representative in Nigeria, Dr. Christian Ebeke, emphasized that while the principal amount has been repaid, the country still has pending financial commitments in the form of SDR charges.
“Nigeria is expected to honor some additional payments in the form of Special Drawing Rights charges of about US$30 million annually,” Dr. Ebeke stated.
These charges are applied to the difference between Nigeria’s SDR holdings, currently at SDR 3,164 million (approximately $4.3 billion), and its cumulative SDR allocation of SDR 4,027 million (around $5.5 billion). The fees are based on the SDR interest rate, which the IMF updates weekly.
For the 2025 fiscal year, Nigeria’s SDR service charges are projected to total SDR 22.35 million, or roughly $30.24 million. These payments are scheduled to be made in May, August, and November.
While the $3.4 billion RFI loan has been settled, this clarification addresses widespread misreporting suggesting Nigeria had fully cleared its IMF obligations.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0
Average Rating