Nigeria has completed the repayment of $3.4 billion emergency loan secured from the International Monetary Fund (IMF) in 2020 under the Rapid Financing Instrument, which was aimed at mitigating the economic impact of the COVID-19 pandemic and the global crash in oil prices.
This was confirmed by the IMF in a statement sent to journalists on behalf of Christian Ebeke, IMF Resident Representative for Nigeria. It stated that the repayment was completed on April 30, 2025.
Despite the full repayment of the loan, Nigeria will continue to honour additional annual payments related to Special Drawing Right (SDR) charges.
IMF highlighted that Nigeria is expected to continue making a yearly payment of about $30m in SDR-related charges over the next couple of years.
The Fund explained that the charges originated from the difference between Nigeria’s SDR holdings and its cumulative SDR allocation.
The statement reads:
“In line with the IMF’s Articles of Agreement, these charges, levied at the SDR interest rate, which is updated at the beginning of each week, apply to the difference between Nigeria’s SDR holdings (SDR 3,164 million) ($4.3 billion) and it’s cumulative SDR allocation (SDR 4,027 million) ($5.5 billion).
The net payment of the charges stops when Nigeria’s SDR holdings reach the cumulative allocation amount.”
The IMF’s COVID-19 financial support was disbursed in April 2020 to help Nigeria address multiple shocks, including a sharp fall in oil prices, a significant contraction in economic activity, and mounting fiscal pressures.
