The Federal Government has confirmed the full repayment of the $3.4 billion emergency loan obtained from the International Monetary Fund (IMF) during the COVID-19 pandemic, marking a significant step in restoring Nigeria’s fiscal credibility on the global stage.
Minister of Information and National Orientation, Mohammed Idris, made the announcement on Monday while briefing journalists after the 27th Federal Executive Council (FEC) meeting at the Aso Rock Villa, Abuja. He said the repayment, approved by President Bola Tinubu, demonstrates the administration’s commitment to honouring international financial obligations inherited from past governments.
“President Tinubu believes that government is a continuum. In line with that philosophy, he gave clear instructions that Nigeria must exit the IMF facility. I am pleased to report that the $3.4bn debt has now been paid in full,” Idris said.
The loan, secured in April 2020 under the IMF’s Rapid Financing Instrument, was intended to address Nigeria’s balance-of-payments challenges and cushion the impact of a global oil price crash triggered by the pandemic. The facility carried a short grace period and was scheduled for full repayment within five years.
According to the Debt Management Office, Nigeria had already returned $1.22 billion to the IMF by the end of September 2023, with the outstanding balance falling to $472 million by January 2025. Improved oil revenues and tighter fiscal management allowed the government to front-load repayments, clearing the debt one quarter ahead of its Q2 2025 maturity.
The IMF confirmed the completion of the repayment on April 30, 2025, marking Nigeria’s first early exit from a multilateral emergency loan. Despite the principal being settled, Nigeria will continue to pay about $30 million annually in Special Drawing Rights (SDR) charges until 2029.
“This move boosts Nigeria’s international credibility. It signals to investors that the country honours its debt commitments and strengthens our position in the global financial system,” Idris added.
He also addressed scepticism in some quarters about the repayment, stating, “Some have expressed doubt about this, but I can confirm that the payment has been made in full.”
Meanwhile, Idris said the Tinubu administration is encouraging increased private sector participation in road construction and infrastructure projects. He revealed that agencies have been directed to support private investors as part of broader efforts to diversify funding sources and drive economic growth.
The Minister also raised concern over rising theft of metallic components from public infrastructure, such as bridges and manhole covers. He said President Tinubu has asked the Attorney-General of the Federation to review current laws and recommend tougher penalties to curb the menace.
“There are already laws in place, but the President has asked the Attorney-General to study them and recommend more stringent measures if necessary,” Idris stated.
To improve executive efficiency, he disclosed that FEC meetings will now be held more frequently. “Council will reconvene in two days to address pending matters. This is part of the President’s strategy to clear long-standing issues and ensure a more responsive government,” he concluded.
