Nigeria has completed the repayment of a $3.4 billion emergency loan from the International Monetary Fund (IMF), which was provided in April 2020 to mitigate the economic impact of the COVID-19 pandemic and the subsequent decline in oil prices .
The loan was disbursed under the IMF’s Rapid Financing Instrument, aimed at addressing urgent balance of payments needs. As of April 30, 2025, Nigeria has fully repaid the principal amount. However, the country is expected to continue making annual payments of approximately $30 million in Special Drawing Rights (SDRs) charges .
In the previous year, Nigeria allocated $4.66 billion towards servicing its foreign debt, with $1.63 billion directed to IMF obligations .
The IMF had approved the $3.4 billion loan in April 2020 to support Nigeria’s efforts in addressing the severe economic impact of the COVID-19 shock and the sharp fall in oil prices .
The successful repayment of this loan marks a significant milestone in Nigeria’s economic recovery and demonstrates the country’s commitment to fiscal responsibility.
International Monetary Fund IMF, Washington, DC Picture on Wikimedia by ajay_suresh
