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- Nigeria was precocious reported to person repaid debts owed to China, the World Bank, and the IMF
- The latest outgo completes the main connected the $3.4 cardinal COVID-19 indebtedness secured successful 2020
- However, the IMF has stated that determination are inactive further repayments to beryllium paid till 2029
Legit.ng journalist Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.
It is confirmed that Nigeria has cleared the $3.4 cardinal loan secured successful 2020 to mitigate the effects of the Coronavirus pandemic and the crisp driblet successful crude lipid prices connected the Nigerian economy.
However, the International Monetary Fund (IMF) has noted that determination are inactive further payments to beryllium made.
This connection debunks reports that claimed that the repayment of the main sum took Nigeria disconnected the IMF debtor list.
Source: Getty Images
IMF speaks connected further payments
In a connection released connected Thursday, the IMF confirmed that adjacent though Nigeria had afloat repaid the fiscal enactment of $3.4 cardinal received successful April 2020, nether the Rapid Financing Instrument.
The connection noted that the further payments to beryllium paid are denominated successful Special Drawing Rights oregon SDR (an planetary reserve plus utilized by IMF) and can beryllium converted to either US dollars, Euro, Chinese renminbi, Japanese Yen oregon British Pound Sterling.
In 2023, Nigeria repaid SDR613.62 million. In 2024, SDR1.22 cardinal was repaid, and successful 2025, different SDR613.62 cardinal has been repaid to implicit the principal.
The charges oregon involvement connected the indebtedness (known arsenic outgo of borrowing) are besides expressed successful SDR, and the IMF connection elaborate what it translates to.
It reads;
“Nigeria is expected to grant further payments successful the signifier of Special Drawing Rights charges of astir US$30 cardinal annually.“In enactment with the IMF’s Articles of Agreements, these charges, levied astatine the SDR involvement rate, which is updated astatine the opening of each week, use to the quality betwixt Nigeria’s SDR holdings (SDR 3,164 million) (US$4.3 billion) and its cumulative SDR allocation (SDR 4,027 million) (US$5.5 billion).”The IMF connection concluded that the nett outgo of the charges stops erstwhile Nigeria’s SDR holdings scope the cumulative allocation amount.
Nigeria to marque yearly payments for 4 years
Legit.ng earlier reported that Nigeria inactive has interest-related charges, including involvement and administrative fees, which volition proceed connected an yearly ground until 2029.
In total, Nigeria's outstanding charges and involvement to the IMF magnitude to SDR125.99 million. At an speech complaint of N2,180 per Special Drawing Right (SDR), based connected XE currency conversion, this translates to astir N274.66 billion.
Source: Twitter
The charges volition stay accordant done 2029, with yearly payments for each twelvemonth ranging from SDR 25,912,903 successful 2026 and 2027 to SDR 25,924,726 successful 2028 and SDR 25,901,079 successful 2029.
IMF confirms day Nigeria volition wide debt
In related news, the IMF has confirmed that Nigeria is scheduled to implicit its repayment by 2029.
From 2026 to 2029, Nigeria volition wage charges and interests amounting to astir $36.14 cardinal oregon SDR 26.7 cardinal annually.
In total, Nigeria volition beryllium repaying astir SDR 436.42 cardinal oregon $570.78 cardinal implicit the adjacent 5 years.
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Source: Legit.ng
