The Federal Government of Nigeria has officially confirmed the full repayment of the $3.4 billion emergency loan that was secured from the International Monetary Fund (IMF) during the COVID-19 pandemic. The announcement was made by the Minister of Information and National Orientation, Mohammed Idris, following the Federal Executive Council (FEC) meeting held at the State House in Abuja on Monday, May 12, 2025.
This repayment marks a significant milestone for Nigeria, as the country is now officially removed from the IMF’s debtor list. The IMF’s latest report confirmed this achievement, indicating that Nigeria has completed a two-year repayment initiative that began in 2023. Idris emphasized that this achievement reflects Nigeria’s ongoing commitment to fiscal discipline and improving the country’s financial standing. He said, “President Tinubu believes that government is a continuum. In line with that philosophy, he gave clear instructions that Nigeria must exit the IMF facility. I am pleased to report that the $3.4bn debt has now been paid in full.”
The loan, secured under the IMF’s Rapid Financing Instrument in April 2020, was initially intended to assist Nigeria in dealing with the economic fallout of the COVID-19 pandemic and the global decline in oil prices. It came with a grace period of three quarters, followed by eight equal quarterly repayments, with the final repayment scheduled for 2025. However, Nigeria successfully managed to pay off the principal balance ahead of schedule. By January 2025, the outstanding balance had been reduced to $472 million, and by April 30, 2025, the loan was fully cleared, a full quarter before the final maturity date.
The successful repayment is expected to strengthen Nigeria’s fiscal credibility on the international stage and improve its standing in the global financial system. Idris noted that the repayment would send a strong message to investors, signaling that Nigeria is serious about honoring its debt commitments. “This move boosts Nigeria’s international credibility. It signals to investors that the country honours its debt obligations and strengthens our position in the global financial system,” Idris added.
However, human rights lawyer, Femi Falana, SAN, has raised concerns regarding the potential mismanagement of the $3.4 billion. Speaking on behalf of the Alliance on Surviving COVID-19 and Beyond (ASCAB), Falana called for a thorough investigation into the possible criminal diversion of the funds. “We urge the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the alleged diversion of the funds,” Falana stated. Falana also appealed to the IMF to suspend the collection of interest, administrative fees, and other charges related to the loan until the investigation is concluded. “The IMF should ensure that the emergency funds were used for their intended purposes,” he emphasized.
Although the principal debt has been fully repaid, Nigeria will continue to pay about $30 million annually in Special Drawing Rights (SDR) charges, which are expected to run until 2029. These charges are part of Nigeria’s broader foreign-debt service obligations, which totaled $4.66 billion in 2024. The IMF accounts for 35% of this total, underlining the ongoing significance of Nigeria’s relationship with the financial institution.
In addition to addressing the debt repayment, Minister Idris also highlighted the government’s efforts to encourage private sector involvement in infrastructure development, particularly in road construction. He noted that there is significant interest from private investors in participating in infrastructure delivery, and the government has directed all relevant agencies to facilitate this participation. “There is a notable appetite from private sector players to participate in infrastructure delivery, especially roads. The government has now directed all relevant agencies to support and enable such participation,” Idris said.
Finally, Idris disclosed that the FEC would be meeting more frequently to expedite decision-making and resolve pending matters. “Council will reconvene in two days to address pending matters. This is part of the President’s strategy to clear long-standing issues and ensure a more responsive government,” he concluded.
