Nigeria has become a debt-free country by fully repaying a $3.4 billion loan it received from the International Monetary Fund (IMF) at the height of the COVID-19 pandemic.
According to a report by Voice of Africa, the payment was completed ahead of schedule on April 30, 2025, a strong sign of fiscal responsibility and sound debt management.
At the start of the COVID-19 pandemic in 2020, many developing economies, including Nigeria, were facing severe economic stagnation, a sharp drop in oil prices, and growing health problems. To address these challenges, Nigeria approached the IMF and obtained an emergency loan of $3.4 billion under the Rapid Financing Instrument (RFI).
The RFI is a loan facility that provides immediate financial assistance to countries facing severe balance of payments pressures.Nigeria used the funds to spend on public health, protect vulnerable groups, and stabilize key sectors of the economy, a loan that proved instrumental in preventing economic collapse during the most challenging months of the pandemic.
Fast repayment and fiscal discipline
The loan was originally designed for long-term repayment, and Nigeria repaid it in full ahead of schedule, which observers attribute to improved fiscal discipline and strong foreign exchange reserves.
According to Christian Ebeye, the IMF’s representative in Nigeria, the final payment was made by April 30, 2025. Although Nigeria will still continue to make small payments of Special Drawing Rights (SDR) charges worth about $30 million each year until 2029, the original loan has been repaid in full.
This early payment is being seen as a symbolic and practical step, aimed at restoring the confidence of international investors and demonstrating Nigeria’s commitment to fiscal responsibility.
Removal from IMF’s list of debtor countries
After the full repayment of the debt, Nigeria has been removed from the IMF’s list of debtor countries.
According to the document, Nigeria’s name was not on the latest register, which has been confirmed, before the IMF list included 91 countries, which had a total arrears of $117.8 billion.With this removal, Nigeria has joined the list of the few developing countries that have recently paid in full the loans obtained during the pandemic.
The move will give Nigeria a more favorable position in negotiations with international financial institutions and investors in the future.
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