EXCLUSIVE: IMF Confirms that Tinubu’s Administration Has Successfully Completed over $3Billion Loan Repayment by Citynobs May 10, 2025, 8:31 am According to Punch, the International Monetary Fund has verified that Nigeria has completed repayment of the $3.4 billion loan it received in 2020 under the Rapid Financing Instrument. The facility, granted at the height of the COVID-19 crisis, was designed to help Nigeria mitigate economic shocks brought on by the pandemic, including a steep drop in oil revenue and increased fiscal stress. According to a statement delivered on behalf of Christian Ebeke, the IMF’s Resident Representative for Nigeria, the final installment of the repayment was made on April 30, 2025. The financial support had been disbursed in April 2020 to bolster Nigeria’s emergency response. The IMF confirmed, “As of April 30, 2025, Nigeria has fully repaid the financial support of about $3.4bn it requested and received in April 2020 from the International Monetary Fund under the Rapid Financing Instrument to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices.” Despite clearing the principal, Nigeria remains obligated to pay annual charges associated with its Special Drawing Rights (SDRs). These payments, which are based on the differential between Nigeria’s current SDR holdings and its total SDR allocation, are expected to average around $30 million per year for the foreseeable future. As outlined by the IMF, Nigeria’s SDR holdings currently stand at 3,164 million (approximately $4.3 billion), while the cumulative allocation sits at 4,027 million (around $5.5 billion). The resulting gap incurs regular charges based on the SDR interest rate, which is revised weekly. In 2025, Nigeria’s total SDR-related charges are estimated to reach SDR 22.35 million, translating to roughly $30.24 million, with payments set to occur in May, August, and November. These payments will continue until the country’s SDR holdings align with its total allocation, at which point the charges will cease. The IMF loan was among the most substantial disbursements globally under the Rapid Financing Instrument and carried more favorable conditions than standard IMF arrangements. According to earlier data, Nigeria’s debt servicing to the IMF in 2024 amounted to $1.63 billion, solely in principal payments, without additional interest or fees recorded for that year. Overall, Nigeria’s external debt servicing for 2024 reached $4.66 billion, rising from $3.5 billion in 2023. Multilateral lenders accounted for the largest share at $2.62 billion, with the IMF comprising about 35 percent of the total payments. While the IMF has acknowledged Nigeria’s full settlement of the COVID-era loan, the annual SDR charges highlight the country’s continuing financial commitments within the global lending framework.
