By Ademuyiwa Balikis
Nigeria has officially cleared its debt to the International Monetary Fund (IMF), bringing to an end its outstanding obligation under the $3.4 billion loan secured in 2020 during the COVID-19 pandemic.
The repayment, confirmed by IMF records covering movements up to May 6, 2025, means Nigeria has now been removed from the Fund’s list of debtor countries. The loan was originally obtained through the Rapid Financing Instrument to cushion the economic impact of falling oil prices and disruptions caused by the global health crisis.
With this development, Nigeria is no longer among the 91 developing and least developed countries that collectively owe about $117.8 billion to the IMF.
Although the debt has been fully paid, the country will continue to meet annual charges tied to Special Drawing Rights, estimated at around $30 million. These payments are part of the residual obligations that follow the clearing of the main debt.
The move is seen as a significant milestone for Nigeria, which has faced years of economic strain, currency pressures, and rising debt service obligations. By exiting the IMF’s debtor list, the country has improved its international credit profile and reduced direct exposure to IMF lending.
