BREAKING NEWS: Nigeria Fully Repays IMF Pandemic Loan.
The International Monetary Fund (IMF) has confirmed that Nigeria has fully repaid the $3.4 billion it received in April 2020 under the Rapid Financing Instrument to combat the COVID-19 crisis. However, the country remains liable for annual charges of around $30 million through 2029.
An IMF statement, relayed by its Nigeria Resident Representative, Christian Ebeke, explained that while the principal has been settled, Nigeria must continue making payments tied to Special Drawing Rights (SDRs) due to the difference between its SDR holdings and allocation.
Key Financial Details:
Total Paid: $3.4 billion (principal)
Annual Charges (2025–2029):
2025: SDR 22.35 million (~$30.17 million)
2026–2029: $34.9 million annually)
Total Remaining Charges: SDR 125.99 million (~$170 million)
Exchange Rate: 1 SDR = $1.35 (as of report date)
The IMF clarified that these charges would cease once Nigeria’s SDR holdings match its cumulative allocation.
Economic Strain Highlighted
According to SaharaReporters’ analysis of Central Bank data, Nigeria’s IMF-related liabilities rose sharply from N2.5 trillion in 2023 to about N5 trillion by the end of 2024 due to naira depreciation.
In January 2025 alone, the government spent N696 billion on debt servicing—exceeding its monthly allocation of N689 billion. Shockingly, that month saw zero capital expenditure.
Political Reactions
Presidential aides disputed earlier claims of increased IMF debt. However, official financial statements from the Central Bank supported the findings, exposing the ongoing burden of foreign-denominated obligations on Nigeria’s economy.
