The International Monetary Fund (IMF) has clarified that Nigeria has made significant progress in settling its financial obligations, but reports of full debt repayment are inaccurate. According to the IMF, Nigeria has repaid its $3.4 billion emergency loan, but a $30 million annual service fee remains outstanding, highlighting the country's continued financial commitments.

Nigeria, Africa's fourth-largest economy, repaid the loan borrowed from the IMF under the Rapid Financing Instrument (RFI), which was accessed in 2020 to cushion the economic impacts of the COVID-19 pandemic. The country's Finance Minister, Wale Edun, confirmed via text message on Thursday that Nigeria had repaid the loan in full, adhering to the agreed terms.

Further confirmation of Nigeria's loan repayment came from the IMF's report 'Total IMF Credit Outstanding – Movement from May 01, 2025 to May 06, 2025', which indicated Nigeria's removal from the list of debtor countries on the institution's website. The list included 91 developing and least developed countries that owed the Fund a total of $117,797,656,224 as of May 6, 2025.

However, the IMF clarified that Nigeria is expected to honor some additional payments in the form of Special Drawing Rights (SDR) charges of about $30 million annually. IMF Resident Representative in Nigeria, Dr. Christian Ebeke, highlighted the fulfillment requirements for loan accounting under the Fund's Rapid Financing Instrument, which provides emergency balance of payments support to member countries.

According to Dr. Ebeke, an additional annual charge of approximately $30 million in SDR fees that Nigeria is required to pay. "Nigeria is expected to honor some additional payments in the form of Special Drawing Rights charges of about US$30 million annually. In line with the IMF's Articles of Agreements, 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) (US$4.3 billion) and its cumulative SDR allocation (SDR 4,027 million) (US$5.5 billion)"

Notably, Nigeria's total SDR charges for 2025 are expected to reach SDR 22.35 million (approximately $30.24 million), with payments scheduled for May, August, and November. The clarification by the IMF provides a more accurate picture of Nigeria's debt status, highlighting the country's continued financial commitments despite broader repayment progress.

The development is significant for Nigeria's economy, as it continues to navigate the challenges of the post-pandemic era. The IMF's clarification provides a more nuanced understanding of the country's debt situation, and underscores the need for continued fiscal discipline and responsible financial management.

As Nigeria looks to the future, the IMF's clarification serves as a reminder of the importance of transparency and accuracy in reporting on the country's debt status. With a more accurate picture of its financial obligations, Nigeria can better plan for its economic future and make informed decisions about its financial commitments.