The International Monetary Fund (IMF) has officially confirmed that Nigeria has fully repaid the $3.4 billion emergency loan it received in April 2020 under the Rapid Financing Instrument (RFI). The loan, disbursed at the peak of the COVID-19 pandemic and a global oil price collapse, was aimed at cushioning Nigeria’s economic shock.
In a statement released on Thursday, IMF Resident Representative in Nigeria, Dr. Christian Ebeke, noted that as of April 30, 2025, the loan had been completely repaid. However, Nigeria is still expected to pay approximately $30 million annually in Special Drawing Rights (SDR) charges, a requirement based on the differential between its SDR holdings and cumulative allocation.
“The net payment of the charges stops when Nigeria’s SDR holdings reach the cumulative allocation amount,” Ebeke clarified.
The IMF defines SDRs as international reserve assets created to supplement member countries’ official reserves. These charges are updated weekly, pegged to the SDR interest rate.
Following the repayment, Nigeria has been removed from the IMF’s debtor list, as confirmed in the Fund’s latest update titled: ‘Total IMF Credit Outstanding – Movement from May 01 to May 06, 2025’. The list, which featured 91 debtor nations owing over $117 billion, no longer includes Nigeria.
IMF Endorses Nigeria’s Economic Reforms
In a separate development, the IMF commended Nigeria’s recent economic policies as bold and necessary for long-term stability. In its 2025 Article IV Consultation Mission, the IMF highlighted several key reforms led by Nigerian authorities, including:
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Ending deficit financing by the Central Bank of Nigeria (CBN)
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Removing fuel subsidies, which had drained public finances
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Improving the foreign exchange market, promoting transparency and access
Axel Schimmelpfennig, head of the IMF delegation, praised the efforts:
“The authorities have taken important steps to stabilise the economy, enhance resilience, and support growth.”
Despite ongoing global economic uncertainties and volatile oil prices, the IMF emphasized that Nigeria is now better positioned to withstand external shocks, provided macroeconomic policies continue to target inflation reduction, fiscal discipline, and private sector-led growth.
These developments signal growing international confidence in Nigeria’s fiscal and monetary direction, potentially unlocking further investment opportunities and economic momentum.
