Nigeria has serviced its International Monetary Fund (IMF) debt with $1.22 billion in repayments over nine months, according to external debt service data from the Debt Management Office (DMO).
The payments were made in three installments, covering Q4 2023 to Q2 2024. A breakdown of the repayments reveals $401.73 million was paid in Q4 2023, $409.35 million in Q1 2024, and $404.24 million in Q2 2024.
These repayments have significantly reduced Nigeria’s debt to the IMF, from $3.26 billion in June 2023 to $1.16 billion by June 2024, reflecting a 64.42% reduction within one year.
Tinubu Administration Faces IMF Loan Obligations
President Bola Tinubu’s administration is tasked with clearing a $3.4 billion IMF debt during his tenure. The loan, secured under the Rapid Financing Instrument in April 2020, was disbursed to address the economic fallout from the COVID-19 pandemic and the sharp decline in oil prices.
The IMF described the loan as part of its efforts to support Nigeria during an economic crisis. In an April 2020 statement, the IMF said:
“The IMF approved $3.4 billion in emergency financial assistance under the Rapid Financing Instrument to support the authorities’ efforts in addressing the severe economic impact of the COVID-19 shock and the sharp fall in oil prices.”
Repayment Timeline and Projections
Nigeria is projected to make significant repayments in the coming years. Key obligations include:
2024: SDR1.32 billion ($1.76 billion), comprising SDR1.23 billion ($1.64 billion) in principal and SDR94.76 million ($126.03 million) in interest.
2025: SDR650.58 million ($865.27 million), including SDR613.63 million ($816.13 million) in principal and SDR36.95 million ($49.14 million) in interest.
2026 and 2027: SDR25.56 million ($33.99 million) annually in interest payments.
In total, the Tinubu administration is expected to repay $3.19 billion, while $320 million may have been repaid during the previous administration.
Loan Terms and CBN’s Role
The Central Bank of Nigeria (CBN) facilitated the IMF loan, which has a five-year tenor, a two-year moratorium, and a 1% annual interest rate. In its 2022 financial statements, the CBN noted:
“Repayment of the IMF loans as well as charges is the responsibility of the bank.”
As repayments continue, Nigeria’s efforts to address its fiscal challenges remain a critical focus for the administration.
