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- The Nigerian authorities has repaid its IMF loan, prompting the IMF to region the state from its database of debtors officially
- The indebtedness was disbursed successful April 2020 nether the Rapid Financing Instrument to assistance Nigeria negociate the economical fallout of the COVID-19 pandemic
- In its latest updated list, Nigeria was not included among the countries indebted to IMF arsenic of May 7, 2025
Legit.ng writer Dave Ibemere has implicit a decennary of business journalism acquisition with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.
The Federal Government of Nigeria has successfully repaid its indebtedness to the International Monetary Fund (IMF), prompting the planetary fiscal instauration to officially region Nigeria from the database of countries with outstanding obligations.
Source: UGC
This improvement follows the last repayment of the main magnitude of its $3.4 cardinal indebtedness obtained nether the IMF’s Rapid Financing Instrument (RFI) connected April 30, 2025.
The loan, disbursed successful April 2020 astatine the highest of the COVID-19 pandemic, was designed to supply exigency enactment for Nigeria’s battered economy, which astatine the clip faced a crisp diminution successful lipid revenues, rising fiscal deficits, and a looming recession.
IMF removes Nigeria from debtors list
IMF's latest records, released connected May 7, 2025, showed that Nigeria is nary longer connected its debtors' list, pursuing the afloat colony of the principal.
However, interest-related charges, including involvement and administrative fees, volition proceed connected an yearly ground until 2029, they are estimated to transcend SDR 22 cardinal ($30 million) successful 2025.
Nigeria nary longer holds immoderate main indebtedness with the IMF, Punch reports.
The IMF’s removal of Nigeria from its database of debtor countries is seen arsenic a important measurement toward improving the country’s recognition illustration and planetary fiscal reputation.
Source: Getty Images
Nigeria efforts to wide its debts
According to IMF data, Nigeria’s outstanding indebtedness to the money dropped importantly from $2.47 cardinal successful 2023 to $800.23 cardinal successful 2024, earlier being afloat cleared successful 2025.
The repayments were portion of a broader indebtedness servicing strategy that saw Nigeria walk $4.66 cardinal connected outer indebtedness obligations successful 2024 unsocial an summation of 167% from N2.57 trillion recorded successful the erstwhile year.
The summation successful indebtedness servicing costs is owed to expanding planetary involvement rates and the naira depreciation, which made dollar loans much expensive.
DMO reports that domestic indebtedness service outgo for 2024 stood astatine N5.97 trillion, representing a 14.15% summation from N5.23 trillion successful 2023.
Most of the home indebtedness work past twelvemonth was owed to the Federal Government Bond, which accounted for N4.69 trillion, a 78.59% increase.
That represents an summation from N3.66 trillion, showing a emergence of N1.03 trillion oregon 28.2%.
FG spends N13.12 trillion connected indebtedness servicing
In a erstwhile study by Legit.ng that the Nigerian authorities serviced debts with astir N13.12 trillion successful 2024, representing a 68% summation from N7.8 trillion successful 2023.
Data from the Debt Management Office (DMO) shows that indebtedness servicing costs successful 2024 exceeded the allocation of N12.3 trillion successful 2024.
The Nigerian authorities earmarked N16 trillion for indebtedness servicing, showing its anticipation for continued debt-related expenses.
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Source: Legit.ng
