Nigeria Fully Repays $3.4 Billion IMF COVID-19 Loan

Nigeria has completed the repayment of a $3.4 billion emergency loan it received from the International Monetary Fund (IMF) to help the country survive the economic challenges brought on by the COVID-19 pandemic. The IMF confirmed on Thursday that Nigeria has paid back the entire loan as of April 30, 2025.

In April 2020, when the pandemic caused a global health crisis and economic downturn, Nigeria—like many countries—faced serious financial difficulties. The country’s economy was hit hard, especially as global oil prices fell sharply. As Africa’s largest oil exporter, Nigeria depends heavily on oil revenues. The drop in oil prices meant less income for the government, making it difficult to meet financial obligations and keep the economy stable. To support Nigeria during that critical period, the IMF provided the loan under its Rapid Financing Instrument (RFI). This special facility was created to offer quick financial assistance to member countries facing urgent balance of payments needs. In simpler terms, it was meant to help countries pay for essential imports, manage their budgets, and stabilize their economies during crises.

According to Christian Ebeke, the IMF’s resident representative in Nigeria, the country has now “fully repaid the financial support” it received during the pandemic. This repayment marks a significant step for Nigeria, showing its effort to maintain financial discipline despite ongoing economic challenges. However, the repayments are not yet completely finished. Ebeke added that Nigeria will still have to pay about $30 million every year in what are known as Special Drawing Rights (SDR) charges. These are extra fees related to the IMF’s financing arrangements, but they are much smaller compared to the original loan amount.

Data from Nigeria’s Debt Management Office shows that in 2024 alone, the country spent about $4.66 billion to service its foreign debt. Out of this amount, $1.63 billion went to the IMF. These figures highlight the significant financial burden Nigeria is carrying as it tries to manage its debts and keep the economy afloat. Repaying the IMF loan is likely to boost Nigeria’s image among international lenders and investors. It shows that, despite inflation, currency pressures, and other financial struggles, the country is still meeting its international obligations. This could make it easier for Nigeria to attract future loans or investments under better terms.

Nevertheless, the government still faces many economic hurdles, including high debt service costs, inflation, unemployment, and pressure on its currency, the naira. While repaying the IMF loan is a positive development, experts say it should be followed by broader reforms to make Nigeria’s economy stronger and more resilient.