Nigeria is on track to fully repay its $3.32 billion loan from the International Monetary Fund (IMF) by 2029, according to new data published by the Fund. The loan, secured in April 2020 through the Rapid Financing Instrument, was granted to help the country manage the financial shocks caused by the COVID-19 pandemic and collapsing oil prices.
Under the current repayment schedule, Nigeria will settle its remaining obligations over the next five years. In 2025 alone, it is expected to repay around $446 million, with annual interest payments of approximately $36 million continuing through 2029. In total, repayments amounting to nearly $591 million are anticipated during this period.
Nigeria’s debt servicing to the IMF has already seen a significant reduction, dropping by 67.6% from $2.47 billion in 2023 to $800 million in 2024. IMF repayments made up a substantial portion—35%—of Nigeria’s total external debt servicing last year.
Since receiving the loan, Nigeria’s economic direction has shifted, with President Bola Tinubu’s administration introducing broad reforms. These include exchange rate unification, fuel subsidy removal, and efforts to boost tax revenues. These steps are designed to stabilize the economy, improve fiscal health, and attract foreign investors.
Global financial bodies have responded with cautious optimism. The World Bank forecasts Nigeria’s economy to grow by 3.6% in 2025, slightly above the IMF’s 3.0% estimate. Inflation has also begun to ease, and external reserves are showing resilience, bolstered by oil exports and remittance inflows.
Successfully completing the IMF repayment schedule would mark a significant achievement for Nigeria. It could strengthen the country’s creditworthiness, expand access to international markets, and improve investor confidence.
The IMF has praised Nigeria’s commitment to macroeconomic stability but continues to encourage further reforms to secure long-term growth and fiscal sustainability.
