Nigeria Clears $3.4 Billion IMF Loan, Exits Multilateral Debtor List

Nigeria has fully repaid a US$3.4 billion loan obtained from the International Monetary Fund (IMF) during the height of the COVID-19 pandemic, marking a significant milestone in its fiscal recovery and effectively removing the country from the IMF’s list of active debtors.

According to data published on the IMF’s website, Nigeria was omitted from the list of countries with outstanding credit under the Fund’s emergency financing facilities. The latest report titled “Total IMF Credit Outstanding – Movement from May 01, 2025 to May 06, 2025” shows that Nigeria is no longer among the 91 developing and low-income nations currently owing the Washington-based institution.

As of May 6, 2025, total outstanding IMF credit stood at US$117.79 billion globally.

The Nigerian government secured the loan facility in April 2020 as part of emergency measures to cushion the economy against the economic fallout of the global pandemic, which disrupted markets and triggered a worldwide recession.

This repayment underscores Nigeria’s improving fiscal discipline and commitment to sustainable debt management. It also reflects recent macroeconomic gains, including a notable rise in foreign exchange reserves. The Central Bank of Nigeria reported net reserves of US$23 billion in 2024 – the highest level recorded in more than three years.

The turnaround follows key structural reforms initiated by the current administration. These policy shifts have allowed the economy to operate based on market fundamentals rather than artificial controls, fostering renewed investor confidence.

As a result, Nigeria has seen an uptick in capital inflows, improved dollar liquidity, and growing investment commitments – critical developments for Africa’s largest oil producer and most populous nation.