Nigeria has successfully completed the repayment of the $3.4 billion emergency loan it received from the International Monetary Fund (IMF) in April 2020. The financing, extended under the Rapid Financing Instrument (RFI), was intended to address urgent balance of payments needs triggered by the economic fallout from the COVID-19 pandemic and the global crash in oil prices.
Although the principal has been fully repaid as of April 30, 2025, Nigeria remains subject to annual payments of approximately $30 million in Special Drawing Rights (SDR) charges. These charges apply to the gap between the country’s SDR holdings and its total SDR allocation, in accordance with the IMF’s Articles of Agreement.
The repayment was carried out over a five-year term, including a grace period of 3.25 years.
This development is viewed as a positive indicator of Nigeria’s commitment to fulfilling its international financial responsibilities, potentially strengthening its standing with global lenders and development partners.
However, the continuation of SDR-related charges underscores the need for prudent fiscal management and robust financial planning to navigate external debt obligations sustainably.
The IMF’s confirmation of Nigeria’s full repayment, along with the details of the ongoing SDR charges, has been reported by several reputable media outlets, including Reuters, Daily Trust, and AllAfrica.
