The Federal Republic of Nigeria has fully repaid the $3.4 billion emergency loan it secured from the International Monetary Fund (IMF), with the final payment made on April 30, 2025.
Under the IMF’s Rapid Financing Instrument, the entire loan was disbursed on April 30, 2020, with the goal of helping Nigeria deal with the economic consequences of the COVID-19 epidemic, which included declining oil earnings, a recession, and heightened fiscal pressures.
While the principal component of the loan has now been fully repaid, a review of the IMF’s records indicates that Nigeria remains responsible for servicing interest and related charges tied to the facility.
The forthcoming charges in 2025 total Special Drawing Rights (SDR) 22,348,146, equivalent to approximately $30.24 million, including a scheduled SDR 6,548,785 (about $8.84 million) in May, followed by additional payments in August and November.
Annual financial obligations to the IMF will persist through 2029, with repayments projected as follows: SDR 25,912,903 in both 2026 and 2027, SDR 25,924,726 in 2028, and SDR 25,901,079 in 2029.
These fees include Net SDR Charges, GRA Basic Charges, and SDR Assessments.
Net SDR Charges represent the interest and related costs imposed by the IMF on borrowing nations, calculated in Special Drawing Rights.
The GRA Basic Charges are standard interest fees associated with loans disbursed from the IMF’s General Resources Account.
SDR Assessments are yearly contributions paid by IMF member countries participating in the SDR system.
These payments reflect Nigeria’s continuing financial commitments related to the emergency financing support received five years ago.
Although the principal repayment marks a significant milestone, the country remains burdened with annual interest and administrative costs, underscoring the complexity of long-term sovereign debt servicing.
Previously, Bizwatch Nigeria reported that Nigeria’s total debt servicing to the IMF rose to $1.63 billion in 2024, comprised entirely of principal repayments, with no interest or additional fees recorded for that period.
The nation’s total external debt servicing reached $4.66 billion in 2024, compared to $3.5 billion in 2023.
Multilateral lenders constituted the majority, accounting for $2.62 billion or 56% of the total external debt service.
Of this, the IMF’s share amounted to 35% of total payments and about 62% of the amount paid to multilateral creditors.
The emergency and budgetary support loan repayments made in 2020 were also a major factor in Nigeria’s outstanding debt to the IMF, which decreased from $2.47 billion in 2023 to $800.23 million in 2024, a 67.6% reduction or $1.67 billion.
