.png)
.png)
1 month ago
49
- The Nigerian authorities has shown itself faithful successful keeping with the repayment presumption of its loans
- Checks amusement that the authorities has been servicing its IMF loans and is present connected way to implicit the indebtedness repayment arsenic scheduled
- This comes arsenic a validation of the caller reappraisal and upgrade done by Fitch Ratings, to amended Nigeria's standing to a 'B'
Legit.ng journalist Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.
There whitethorn beryllium immoderate fiscal respite up for Nigeria, arsenic information shows that the federal government is connected way to implicit the repayment of the International Monetary Fund (IMF)Rapid Financing Instrument indebtedness by 2029.
IMF published the latest repayment docket connected its website to amusement the details of this loan.
Nigeria secured support for an exigency fiscal enactment of 2,454.50 cardinal Special Drawing Rights (translating to astir $3.32bn astatine the prevailing speech complaint of SDR1 to $1.35404 arsenic of May 1, 2025).
Source: Getty Images
The indebtedness was afloat disbursed connected 30 April, 2020, to assistance code equilibrium of outgo needs, amid the devastating economical impacts of the Coronavirus pandemic connected planetary lipid prices.
Following the fiscal pressures and obligations to beryllium met, Nigeria secured the installation rapidly with repayment to commencement successful 2025 and past till 2029.
While RFI disbursement was rapidly approved, with minimal conditions and without pursuing the accepted IMF processes, repayment presumption are considered binding.
This means that Nigeria’s advancement successful repaying the IMF indebtedness would beryllium interpreted arsenic a affirmative awesome to planetary investors and improvement partners, particularly aft the caller upgrade from Fitch Ratings.
Legit.ng earlier reported that Nigeria successfully serviced loans from the World Bank, the IMF, and China.
IMF confirms outgo schedule
Below is the outgo schedule.
- 2025 – Nigeria is to repay $446.21 cardinal (equivalent of SDR 329.62 million, comprising a last main magnitude of SDR 306.81 million, and involvement charges of SDR 22.81 million)
- 2026 to 2029 – Charges and interests amounting to astir $36.14 cardinal oregon SDR 26.7 cardinal each year
- In total, Nigeria volition beryllium repaying astir SDR 436.42 cardinal oregon $570.78 cardinal implicit the adjacent 5 years.
Nigeria’s indebtedness servicing to IMF drops aft large repayment
It was earlier reported that Nigeria’s indebtedness to the IMF has dropped from $2.47 cardinal successful 2023 to $800.23 cardinal successful 2024.
Source: UGC
This was said to beryllium connected to the repayments of the exigency and budget-support facilities disbursed successful 2020, the PUNCH reports.
Total outer indebtedness servicing, however, accrued successful 2020 to $4.66 billion, from $3.5 cardinal successful 2023, and this included loans to IMF, World bank and others.
Nigeria's indebtedness servicing increases by 33%
Legit.ng earlier reported that Nigeria's outer debt servicing grew by 33%, twelvemonth connected year.
The investigation showed an summation from $3.5 cardinal successful 2023 to $4.66 cardinal successful 2024, marking astir $1.16 cardinal increase.
DMO information shows that astir of the outer indebtedness work for 2024 was paid to commercialized creditors with $1.47 billion.
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
