Market News

From Adanna Nnamani, Abuja

International Monetary Fund (IMF) has officially confirmed that Nigeria has fully repaid the $3.4 billion emergency financial assistance it received in April 2020 to cushion the scorching economic impact of the COVID-19 pandemic.

The confirmation came in a statement issued to journalists on Thursday on behalf of Mr. Christian Ebeke, the IMF’s Resident Representative for Nigeria.

According to the Fund, the repayment was concluded on April 30, 2025 and marked the closure of one of the largest emergency financial packages disbursed under the Rapid Financing Instrument (RFI) during the global crisis.

“As of April 30, 2025, Nigeria has fully repaid the financial support of about US$3.4 billion it requested and received in April 2020 from the International Monetary Fund (IMF) under the Rapid Financing Instrument to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices,” the IMF said.

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While the country has now completed repayment of the principal amount, the IMF clarified that Nigeria will still be required to make annual payments associated with Special Drawing Rights (SDRs), which represent the IMF’s unit of account and reserve asset.

“Nigeria is expected to honor some additional payments in the form of Special Drawing Rights charges of about US$30 million annually,” the Fund noted.

>span class="s3">It further clarified that, “The net payment of the charges stops when Nigeria’s SDR holdings reach the cumulative allocation amount.”

According to the IMF’s public financial data, Nigeria’s total SDR charges for the year 2025 are projected to reach SDR 22.35 million, which amounts to approximately $30.24 million. These payments are expected to be made in three tranches—May, August, and November.

Overall, Nigeria’s external debt servicing surged to $4.66 billion in 2024—an increase from $3.5 billion in 2023. Multilateral creditors accounted for the lion’s share of that figure at $2.62 billion, representing 56% of total external debt service. The IMF alone was responsible for about 35% of Nigeria’s total external debt payments in 2024.

Analysts say the IMF’s confirmation of Nigeria’s full repayment sends a strong signal to the international financial community about the country’s commitment to meeting its debt obligations—despite the challenging macroeconomic environment.

In an era where rising global interest rates and fluctuating oil revenues have put pressure on many developing economies, Nigeria’s early repayment of a major emergency facility could improve its creditworthiness and potentially enhance its access to future concessional financing.