IMF Confirms Nigeria Has Fully Repaid $3.4 Billion Loan

The International Monetary Fund (IMF) has confirmed that Nigeria has fully repaid the $3.4 billion loan it received in 2020 to help ease the economic impact of the COVID-19 pandemic.

This repayment was completed on April 30, 2025, according to a statement shared with journalists by the IMF’s Resident Representative in Nigeria, Christian Ebeke.

The loan was granted under the Rapid Financing Instrument (RFI) and was aimed at supporting Nigeria during a time of falling oil prices and economic downturn caused by the pandemic.

The IMF noted that although Nigeria has settled the main loan, it still has to make annual payments tied to Special Drawing Rights (SDRs).

These charges—around $30 million per year—are based on the difference between Nigeria’s SDR holdings and its total SDR allocation.

As it stands, Nigeria holds SDR 3,164 million (about $4.3 billion), while its total allocation is SDR 4,027 million (about $$5.5 billion).

“As of April 30, 2025, Nigeria has fully repaid the financial support of about $3.4bn it requested and received in April 2020 from the International Monetary Fund under the Rapid Financing Instrument to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices,” the IMF stated.

The IMF explained that these charges are calculated using the SDR interest rate, which changes weekly. Payments will continue until Nigeria’s SDR holdings match the full allocation amount.

Details on the IMF website show that Nigeria is expected to pay SDR 22.35 million (roughly $30.24 million) in 2025, with payments spread across May, August, and November.

The original $3.4 billion loan was one of the largest ever disbursed under the IMF’s RFI globally and was granted with more flexible terms than typical IMF loans.

Data also shows that Nigeria’s payments to the IMF rose sharply in 2024, totaling $1.63 billion—all of which went toward repaying the principal. There were no extra interest or charges that year.

In total, Nigeria spent $4.66 billion on servicing external debt in 2024, compared to $3.5 billion the year before. Payments to multilateral lenders made up the largest share, with the IMF accounting for 35% of those costs.

The statement said, “Nigeria is expected to honour some additional payments in the form of Special Drawing Rights charges of about $30m annually.

“In line with the IMF’s Articles of Agreements, these charges, levied at the SDR interest rate, which is updated at the beginning of each week, apply to the difference between Nigeria’s SDR holdings (SDR 3,164 million) ($4.3bn) and its cumulative SDR allocation (SDR 4,027 million) ($5.5bn).

“The net payment of the charges stops when Nigeria’s SDR holdings reach the cumulative allocation amount.”

While the full repayment of the loan improves Nigeria’s external debt position, the ongoing SDR-related charges show that the country still has some financial responsibilities left with the IMF.

KanyiDaily recalls that the International Monetary Fund (IMF) raised an alarm, cautioning that Nigeria is facing a worsening economic crisis.