Nigeria has officially cleared the $3.4 billion emergency loan it received from the International Monetary Fund (IMF) in April 2020, aimed at cushioning the effects of the COVID-19 pandemic and a steep drop in oil prices. The IMF confirmed the full repayment in a statement issued on May 6, 2025, and praised the country for its financial progress.

Dr. Christian Ebeke, IMF’s Resident Representative in Nigeria, stated: “As of April 30, 2025, Nigeria has fully repaid the financial support of about $3.4 billion it requested in 2020.”

However, despite clearing the loan, Nigeria is expected to make additional payments in the form of Special Drawing Rights (SDR) charges. “Nigeria is expected to honor some additional payments in the form of SDR charges of about $30 million annually,” Ebeke added.

This payment, levied at the SDR interest rate, applies to the difference between Nigeria’s SDR holdings and its cumulative SDR allocation. The charges will cease once Nigeria’s SDR holdings reach the cumulative allocation amount.

In related news, the IMF removed Nigeria from its list of debtor countries, a significant milestone as the country works to stabilize its economy and foster growth. The IMF commended Nigeria for its bold economic reforms, including the removal of fuel subsidies and improvements in the foreign exchange market.

The IMF’s 2025 Article IV Consultation Mission remarked, “The Nigerian authorities have taken important steps to stabilize the economy, enhance resilience, and support growth,” emphasizing the country’s commitment to long-term economic stability.