The International Monetary Fund (IMF) has announced that Nigeria has successfully repaid the $3.4 billion loan obtained through the Rapid Financing Instrument, aimed at alleviating the economic effects of the COVID-19 pandemic. In a communication sent to SaharaReporters on behalf of Mr. Christian Ebeke, the IMF Resident Representative for Nigeria, it was noted that while the principal amount has been settled, Nigeria is still obligated to pay around $30 million each year in related fees.
The IMF confirmed that as of April 30, 2025, Nigeria has completely repaid the financial assistance of approximately $3.4 billion received in April 2020 to mitigate the repercussions of the pandemic and the significant decline in oil prices. Additionally, Nigeria is anticipated to fulfill further payments in the form of Special Drawing Rights charges totaling about $30 million annually.
According to the IMF’s Articles of Agreement, charges are imposed at the SDR interest rate, which is revised weekly, based on the difference between Nigeria’s SDR holdings of SDR 3,164 million (approximately US$4.3 billion) and its total SDR allocation of SDR 4,027 million (around US$5.5 billion).
The IMF noted that the obligation to pay these charges ceases once Nigeria’s SDR holdings equal the total allocation. Previously, SaharaReporters reported that Nigeria is still responsible for annual charges to the IMF, even after fully repaying the principal of the US$3.4 billion loan taken in April 2020. The latest data from the IMF, updated on April 30, 2025, indicates that Nigeria is projected to incur interest and charges amounting to SDR 22.35 million for 2025.
For the years 2026 and 2027, the anticipated payments are SDR 25.91 million each year, with SDR 25.92 million expected in 2028 and SDR 25.90 million projected for 2029.
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