By IDNN Business & Finance Desk
Published: May 9, 2025
The International Monetary Fund (IMF) has confirmed that Nigeria has fully repaid the $3.4 billion Rapid Financing Instrument (RFI) loan disbursed at the height of the COVID-19 pandemic in 2020 — a move experts say may boost investor confidence in the country’s debt profile.
In a formal statement issued Thursday on behalf of IMF Resident Representative for Nigeria, Mr. Christian Ebeke, the Fund revealed that the final payment was completed on April 30, 2025.
“As of April 30, 2025, Nigeria has fully repaid the financial support of about $3.4 billion it requested and received in April 2020 from the IMF,” the statement read.
The loan was extended to help Nigeria cushion the economic shocks of collapsing oil prices, rising fiscal deficits, and pandemic-related lockdowns.
What the Repayment Means
The full repayment signals a milestone in Nigeria’s debt management strategy, particularly after concerns over the country’s ballooning external debt and foreign exchange liquidity challenges.
Analysts say it could reassure credit agencies and lenders of Nigeria’s repayment discipline, particularly with the country now pursuing market-based reforms under President Bola Tinubu’s economic team.
However, the repayment does not mean Nigeria is debt-free from the IMF.
Nigeria Still Owes $30 Million Annually in SDR Charges
Despite settling the $3.4bn principal, Nigeria is still liable for annual Special Drawing Rights (SDR) charges of approximately $30 million, linked to the country’s SDR holdings and allocations.
As of now, Nigeria’s SDR holdings stand at SDR 3,164 million ($4.3 billion), while its cumulative allocation is SDR 4,027 million ($5.5 billion).
“These charges, levied at the SDR interest rate, apply to the difference between Nigeria’s SDR holdings and its cumulative allocation,” the IMF noted.
Payments will continue until Nigeria’s SDR holdings match its allocation, according to the IMF’s Articles of Agreement. The charges are recalculated weekly based on fluctuating SDR interest rates.
Payment Schedule & Historical Context
Data from the IMF’s website indicates that total charges for 2025 are projected at SDR 22.35 million ($30.24 million), with payments scheduled for May, August, and November.
The IMF also revealed that Nigeria’s total debt servicing to the Fund surged to $1.63 billion in 2024, covering principal repayments only, with no additional charges recorded for that year.
In contrast, total external debt servicing for Nigeria hit $4.66 billion in 2024, up from $3.5 billion in 2023, with multilateral creditors like the IMF accounting for 35% of the 2024 figure.
One of the Largest COVID Loans Globally
Nigeria’s $3.4 billion drawdown under the RFI was among the largest single disbursements issued by the IMF during the pandemic. The RFI is distinct from traditional IMF programs because it comes with fewer structural conditions, making it easier for countries to access during emergencies.
The loan was disbursed at relatively favorable terms, without an economic reform program or review conditionalities — unlike the Extended Credit Facility or Stand-by Arrangements.
While it provided short-term relief, the real pressure has been on the medium-to-long term repayments, which Nigeria has now concluded in full — apart from SDR-linked fees.
