The International Monetary Fund (IMF) has confirmed that Nigeria has fully repaid the $3.4 billion loan it secured in April 2020 under the Rapid Financing Instrument (RFI) to cushion the impact of the COVID-19 pandemic and the global crash in oil prices.
The global financial institution disclosed this in a statement issued on Thursday in Abuja, stating that the repayment was completed as of April 30, 2025.
The loan, obtained during the administration of former President Muhammadu Buhari, was aimed at supporting Nigeria’s balance of payments and mitigating the effects of the pandemic-induced economic downturn.
Although the debt has been cleared, the IMF said Nigeria is still expected to continue with some related financial obligations, particularly in the form of Special Drawing Rights (SDR) charges, estimated at about $30 million per year.
“In line with the IMF’s Articles of Agreement, these charges—levied at the SDR interest rate, which is updated weekly—apply to the difference between Nigeria’s SDR holdings (SDR 3.164 billion or $4.3 billion) and its cumulative SDR allocation (SDR 4.027 billion or $5.5 billion),” the statement read.
The IMF added that these net payments will cease once Nigeria’s SDR holdings match its cumulative SDR allocation.
This repayment marks a significant milestone in Nigeria’s debt obligations with the IMF and comes at a time when the country is grappling with high inflation, exchange rate volatility, and the need for stronger fiscal reforms.
