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Finance
FG Pays Off Debt, IMF Takes Nigeria Off of Updated Debtors List
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By EntekHub.com - Posted on
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The Federal Government of Nigeria has successfully repaid its debt to the International Monetary Fund (IMF), prompting the global financial institution to officially remove Nigeria from the list of countries with outstanding obligations.
This development follows the final repayment of the principal amount of its $3.4 billion loan obtained under the IMF’s Rapid Financing Instrument (RFI) on April 30, 2025.
The loan, disbursed in April 2020 at the peak of the COVID-19 pandemic, was designed to provide emergency support for Nigeria’s battered economy, which at the time faced a sharp decline in oil revenues, rising fiscal deficits, and a looming recession.
IMF’s latest records, released on May 7, 2025, showed that Nigeria is no longer on its debtors’ list, following the full settlement of the principal. However, interest-related charges, including interest and administrative fees, will continue on an annual basis until 2029, they are estimated to exceed SDR 22 million ($30 million) in 2025. Nigeria no longer holds any principal debt with the IMF, Punch reports. The IMF’s removal of Nigeria from its list of debtor countries is seen as a significant step toward improving the country’s credit profile and international financial reputation.
According to IMF data, Nigeria’s outstanding debt to the fund dropped significantly from $2.47 billion in 2023 to $800.23 million in 2024, before being fully cleared in 2025. The repayments were part of a broader debt servicing strategy that saw Nigeria spend $4.66 billion on external debt obligations in 2024 alone an increase of 167% from N2.57 trillion recorded in the previous year.
The DMO reports a 14.15% increase in domestic debt service costs for 2024, primarily due to the Federal Government Bond, which accounted for N4.69 trillion, a 78.59% increase from N3.66 trillion in 2023, and a 28.2% rise from N3.66 trillion. This is primarily due to rising global interest rates and naira depreciation.
Source: legit.ng