Tinubu and IMF Chieff
Whereas Nigeria has fully repaid its $1.61bn (N2.59trn as of May 7, 2025) debt obligation to the International Monetary Fund (IMF), a check through the IMF’s webiste by IntelRegion on May 7, 2025, revealed that Nigeria has been removed among list of countries owning the international financial agency.
A data obtained popular data company, StatiSense showed that Nigeria paid off the debt in gradual from $1.61 billion in July 28, 2023 to $1.37 billion in January 5, 2024 to $933.03 million in July 10, 2024 to $472.06 million in January 8, 2025 and settled the reamining debt by May 6, 2025.
An official IMF statement confirming the development said the clearance marks the end of a decades-long financial burden that had weighed heavily on Africa’s most populous nation.
Legacy debts refer to obligations accumulated over past administrations, often including arrears owed to international creditors, bilateral partners, and domestic contractors.
IMF Managing Director Kristalina Georgieva praised the Nigerian government for its “decisive fiscal management and commitment to long-term economic reform.”
She noted that this achievement reflects “a critical turning point for Nigeria’s economic trajectory and global credit standing.”
Speaking on the development, O’tega Ogra, the senior special assistant to President Bola AhmedTinubu on digital engagement, strategy, and new media described it as a signal of discipline, reform, and strategic reset by the Tinubu-Shettima administration in restructuring our finances to enable us to be better placed for a prosperous future.
However, the IMF’s records reveal a more nuanced picture. While the principal has been fully repaid, Nigeria is not entirely off the hook. The country still owes millions of dollars in interest — classified by the IMF as “charges” — which will continue to accrue through 2029.
WHAT NIGERIA ACTUALLY REPAID
The loan was issued in April 2020 under the IMF’s Rapid Financing Instrument (RFI). The financial aid was designed to offer fast-disbursing support to countries facing urgent balance-of-payments challenges.
Nigeria received the full allocation of SDR 2.45 billion (roughly $3.4 billion at the time) in one tranche.
Repayment began in 2023 and was scheduled to conclude in two years. By April 30, Nigeria had cleared the entire principal, officially ending its loan balance with the IMF.
But like any loan, principal repayment is only part of the cost. Interest — or charge — remains due.
As of June 30, 2023, Nigeria’s outstanding balance stood at SDR 2.45 billion. By year-end 2023, it had dropped to SDR 1.84 billion. By mid-2024, it was down to SDR 1.23 billion, and as of March 31, just SDR 306.81 million remained. The final payment in April wiped the slate clean, for the principal at least.
WHY NIGERIA STILL OWES MONEY
From the start, the IMF loan included standard charges: a one-time 0.5% service fee paid upfront and ongoing interest tied to the loan’s duration.
The interest, called the “basic charge,” is based on the (Special Drawing Rights) SDR interest rate — which reflects short-term global rates — plus a fixed IMF margin.
As of May 2025, the SDR rate stood at about 3.0%, with an added 0.6% margin, placing Nigeria’s effective rate at 3.6% annually.
This interest is calculated quarterly. So even though the principal was cleared in April, Nigeria still owes interest that accrued before then — particularly for the first quarter of 2025.
HOW MUCH NIGERIA ACTUALLY OWES
According to IMF projections, Nigeria still owes SDR 125.99 million in charges. This is sum of total interest due from now through 2029.
That figure includes SDR 22.35 million in 2025, followed by roughly SDR 25.9 million annually from 2026 to 2029. These payments are spread out quarterly and are part of the original loan agreement.
