Nigeria has completed the payment of a $3.4 billion loan borrowed from the International Monetary Fund (IMF) during the COVID-19 pandemic, effectively exiting the debtor list of the multilateral bank.
Data sourced from the website of the Washington-based lender shows Africa’s most populous nation had paid off its owings after the country was omitted from the listed debtors in a report titled ‘Total IMF Credit Outstanding – Movement from May 01, 2025 to May 06, 2025” obtained on the multilateral institution’s website.
The list, which had 91 developing and less developed countries, revealed that the Fund had a total of $117,79 billion outstanding as at May 6, 2025.
The federal government sought emergency assistance from the IMF in April 2020 in the wake of the COVID-19 to shore up the country’s economy and help businesses weather the storm of a deadly pandemic that disrupted global markets and plunged the world into a recession.
The loan repayment highlights the fiscal sustainability of the nation and its ability to manage its debt with the Central Bank of Nigeria reporting that its net reserves hit $23 billion in 2024, the highest in over three years.
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The positive position comes as the government liberalised its foreign exchange market and removed pegging from its petroleum market, a situation that’s allowed the economy to be driven by fundamentals rather than artificial forces.
This move has lured in capital inflows and have made return much needed dollar liquidity and investment pledges into the country that’s touted as Africa’s biggest oil producer.
The Washington-based Fund recently commended the country’s authorities for embarking on those market reforms following its visit to the country led by Axel Schimmelpfennig, IMF mission chief for Nigeria.
The Fund stated that while the government has taken important steps to stabilise the economy by abolishing costly fuel subsidies and liberalising its foreign exchange market, “gains have yet to benefit all Nigerians as poverty and food insecurity remain high.”
