Nigeria completes $3.4 Billion IMF COVID-19 loan repayment, faces ongoing annual charges

As of April 30, 2025, Nigeria has fully repaid the $3.4 billion emergency funding it received from the International Monetary Fund (IMF) in April 2020 under the Rapid Financing Instrument (RFI).

This facility was designed to provide urgent financial assistance to countries facing balance of payments needs, particularly in response to the economic challenges posed by the COVID-19 pandemic and the sharp decline in oil prices.

Despite the full repayment of the principal amount, Nigeria is still obligated to make annual payments of approximately $30 million in Special Drawing Rights (SDR) charges. These charges are levied on the difference between Nigeria’s SDR holdings and its cumulative SDR allocation, as stipulated by the IMF’s Articles of Agreement.

The repayment schedule was structured over five years, with a grace period of 3.25 years.

This successful repayment reflects Nigeria’s commitment to meeting its international financial obligations and may enhance its credibility with global financial institutions.

However, the ongoing annual SDR charges highlight the importance of continued fiscal discipline and strategic financial planning to manage external obligations effectively.

The IMF’s confirmation of Nigeria’s repayment and the details of the ongoing charges were reported by multiple news outlets, including Reuters, Daily Trust, and AllAfrica.

Read also…