IMF Verifies Nigeria’s $3.3bn Mortgage Reimbursement

The Worldwide Financial Fund (IMF) has confirmed that Nigeria has totally repaid the $3.4bn monetary assist it acquired below the Fast Financing Instrument to cushion the financial impacts of the COVID-19 pandemic.

In an announcement despatched to journalists on Thursday on behalf of Mr Christian Ebeke, the IMF Resident Consultant for Nigeria, the Fund mentioned the reimbursement was accomplished on April 30, 2025. The mortgage, disbursed in April 2020, was geared toward serving to Nigeria handle a pointy fall in oil costs, financial contraction, and monetary pressures brought on by the pandemic.

“As of April 30, 2025, Nigeria has totally repaid the monetary assist of about $3.4bn it requested and acquired in April 2020 from the Worldwide Financial Fund below the Fast Financing Instrument to assist alleviate the influence of the COVID-19 pandemic and the sharp fall in oil costs,” the IMF said.

Nevertheless, regardless of the complete settlement of the principal, Nigeria will proceed to honour extra annual funds associated to Particular Drawing Rights costs. The Fund famous that the nation is predicted to make annual funds of about $30m in SDR-related costs over the following few years.

In accordance with the IMF, the costs are tied to the distinction between Nigeria’s SDR holdings, which presently stand at SDR 3,164m ($4.3bn), and its cumulative SDR allocation of SDR 4,027m ($5.5bn).

The costs are levied on the SDR rate of interest, which is up to date weekly, and can proceed till Nigeria’s SDR holdings match the cumulative allocation quantity.

The assertion famous, “Nigeria is predicted to honour some extra funds within the type of Particular Drawing Rights costs of about $30m yearly.

“Consistent with the IMF’s Articles of Agreements, these costs, levied on the SDR rate of interest, which is up to date at the start of every week, apply to the distinction between Nigeria’s SDR holdings (SDR 3,164 million) ($4.3bn) and its cumulative SDR allocation (SDR 4,027 million) ($5.5bn).

“The online fee of the costs stops when Nigeria’s SDR holdings attain the cumulative allocation quantity.”

Knowledge obtained from the IMF web site exhibits that Nigeria’s complete cost for 2025 is predicted to achieve SDR 22.35m (roughly $30.24m), with funds scheduled throughout Could, August, and November.

Nigeria’s $3.4bn mortgage from the IMF was one of many largest disbursements below the Fast Financing Instrument globally and got here with comparatively beneficial phrases in comparison with conventional IMF programmes.

Earlier studies confirmed that debt servicing to the IMF surged to $1.63bn in 2024, made up fully of principal repayments, with no curiosity or costs recorded for that yr.

Nigeria’s complete exterior debt servicing for 2024 amounted to $4.66bn, up from $3.5bn in 2023. Multilateral collectors accounted for the majority of the quantity at $2.62bn, with the IMF liable for about 35 per cent of the whole exterior debt funds through the interval.

The IMF’s affirmation of the mortgage reimbursement is thought to be a constructive improvement for Nigeria’s exterior debt profile, though the continuation of annual costs underscores the nation’s ongoing monetary obligations to the Fund.