Nigeria settles principal on $3.4bn IMF COVID-19 loan
Nigeria has completed the repayment of the principal on its $3.4 billion loan from the International Monetary Fund (IMF).
The loan, fully disbursed on April 30, 2020, was granted under the IMF’s Rapid Financing Instrument (RFI) as emergency support to help Nigeria navigate the economic fallout from the COVID-19 pandemic, including plunging oil prices, a recession, and heightened fiscal strain.
However, while the principal has been fully repaid, a review of the IMF website indicates that associated charges, primarily interest payments, remain outstanding.
These charges will continue to be settled through annual repayments over the coming years.
According to IMF records, the Bretton Woods institution disbursed SDR 2.45 billion (approximately $3.4 billion) to Nigeria in 2020 under the Rapid Financing Instrument (RFI), as emergency assistance to cushion the economic impact of the COVID-19 pandemic.
Special Drawing Rights (SDRs) are reserve assets used by the IMF to supplement member countries’ official reserves.
The IMF’s data details the repayments as follows: SDR 613.62 million in 2023, SDR 1.22 billion in 2024, and SDR 613.62 million in 2025.
Former presidential aide Tolu Ogunlesi confirmed the repayment via Twitter on Thursday.
“This US$3.4 billion (equivalent to 2.454.5 billion SDR; amounting to 100% of our SDR quota) Covid-19 assistance from the IMF to @NigeriaGov, under the IMF’s Rapid Financing Instrument (RFI), has now been fully repaid, in line with the terms of the agreement,” Ogunlesi wrote.
He explained that Nigeria’s five-year repayment plan, which included a 3.25-year moratorium, concluded under the current administration.
“A repayment period of 5 years, meaning 2020 to 2025, and a moratorium of 3.25 years, meaning that we had a grace period until Q3 2023 before we had to start repaying.”
Ogunlesi emphasized Nigeria’s commitment to honoring its international obligations:
“PBAT has kept to the terms, and as of May 2025, the loan has been fully repaid. Naija no dey carry last, and we no dey default.”
He also shared a breakdown of the repayment timeline using data from the IMF website:
“Outstanding as at June 30, 2023: 2,454,500,000;
Dec 31, 2023: 1,840,875,000;
June 30, 2024: 1,227,250,000;
March 31, 2025: 306,810,000;
May 07, 2025: 0.”
O’tega Ogra, Senior Special Assistant on Digital and New Media to President Bola Tinubu, also hailed the development, stating that with the loan fully repaid, Nigeria has improved its fiscal reputation globally.
“Nigeria is now better placed to strengthen our fiscal credibility and show the world, and Nigerians, that Nigeria is serious about managing our economy with responsibility and vision,” Ogra said.
He added that future financial engagements would be strategic and collaborative:
“Henceforth, any future engagement will be proactive, not reactive and will also be based on partnership, not dependence.”
