FG disburses money to settle debt to IMF, more debts to World bank, others

• Nigeria’s Federal Government accrued its outer indebtedness servicing by 49% betwixt January and April 2025, paying implicit $2.01 cardinal compared to $1.33 cardinal successful the aforesaid play successful 2024
• The state afloat repaid the $3.4 cardinal indebtedness it received from the IMF’s Rapid Financing Instrument successful April 2020, aimed astatine mitigating the COVID-19 economical impact
• Despite the repayment, Nigeria volition proceed to incur yearly charges related to Special Drawing Rights until its SDR holdings lucifer the full allotment

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Central Bank of Nigeria's (CBN) astir caller overseas outgo information shows that the Federal Government disbursed 49% much connected servicing outer indebtedness than it did the erstwhile year.

Nigeria's overseas speech reserves decreased by astir $3 cardinal implicit the reappraisal period. Photo Credit: FG
Source: UGC

The information shows that betwixt January and April 2025, Nigeria paid implicit $2.01 cardinal connected repaying its outer debt, up from $1.33 cardinal successful 2024.

During the 4 months, debt servicing alone accounted for 77.1% of Nigeria's full planetary payments, a important summation from the 64.5% proportionality observed during the aforesaid play successful 2024.

As of April 2025, the nation's full overseas payments—which see indebtedness service, remittances, and letters of credit—amounted to $2.60 billion, an summation from $2.07 cardinal during the aforesaid play successful 2024.

According to reports, Nigeria's foreign speech reserves decreased by astir $3 cardinal implicit the reappraisal period.

Nigeria paid $540.67 cardinal successful January 2025 compared to $560.52 cardinal successful January 2024 connected a monthly basis.

The magnitude was $276.73 cardinal successful February, which was astir the aforesaid arsenic the $283.22 cardinal paid successful February 2024.

However, indebtedness work accrued to $632.36 cardinal successful March, much than doubly arsenic overmuch arsenic the $276.17 cardinal paid successful the aforesaid period the erstwhile year.

With an further $557.79 cardinal repaid successful April, the rising inclination continues. This represents a 159% summation implicit the $215.20 cardinal paid successful April 2024.

According to the data, the federation spent astir $1.2 cardinal connected indebtedness repayments successful conscionable March and April.

This comes aft the International Monetary Fund (IMF) confirmed that Nigeria had afloat repaid the $3.4 cardinal it had received done the Rapid Financing Instrument to assistance mitigate the economical effects of the COVID-19 pandemic.

Compared to accepted IMF programmes, the indebtedness had precise favourable presumption and was 1 of the largest disbursements made nether the Rapid Financing Instrument worldwide.

The repayment was completed connected 30 April 2025, according to a connection issued by the Fund connected behalf of Christian Ebeke, the IMF Resident Representative for Nigeria.

The IMF stated,

“As of 30 April 2025, Nigeria has afloat repaid the fiscal enactment of astir $3.4 cardinal it requested and received successful April 2020 from the International Monetary Fund nether the Rapid Financing Instrument to assistance alleviate the interaction of the COVID-19 pandemic and the crisp autumn successful lipid prices.”

The loan, which was disbursed successful April 2020, was intended to assistance Nigeria successful coping with the pandemic’s fiscal strains, economical recession, and precipitous diminution successful lipid prices.

The Covid-19 indebtedness had precise favourable terms. Photo Credit: FG
Source: UGC

Nigeria volition proceed to wage further yearly costs associated with Special Drawing Rights charges of astir $30 cardinal implicit the coming years, adjacent aft the indebtedness has been afloat repaid.

The charges are related to the discrepancy betwixt Nigeria's cumulative SDR allotment of SDR 4,027 cardinal ($5.5 billion) and its existent SDR holdings of SDR 3,164 cardinal ($4.3 billion).

According to the IMF, the fees are assessed astatine the weekly-updated SDR involvement complaint and volition persist until Nigeria's SDR holdings adjacent the full magnitude allotted.

FG repays China, World Bank, IMF, different loans

Legit.ng reported that Nigeria spent astir $4.66 cardinal on outer indebtedness servicing, an summation of 167% from N2.57 trillion recorded successful the erstwhile year.

According to reports, home indebtedness work outgo for the twelvemonth nether reappraisal stood astatine N5.97 trillion, representing a 14.15% summation from N5.23 trillion successful 2023. The summation is owed to higher involvement rates and rising home borrowing.

Nigeria spent astir $4.66 cardinal connected outer indebtedness servicing, an summation of 167% from N2.57 trillion recorded successful the erstwhile year.

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng