Nigeria is set to complete the repayment of its $3.32 billion International Monetary Fund (IMF) Rapid Financing Instrument (RFI) loan by 2029, marking a key milestone in the country’s post-COVID-19 economic recovery journey. The development underscores the country’s improving debt management strategy and macroeconomic outlook under the administration of President Bola Tinubu.
According to the IMF’s repayment schedule, Nigeria’s remaining obligations—totaling approximately 436.42 million Special Drawing Rights (SDRs), equivalent to $590.78 million—are to be serviced between 2025 and 2029. The first tranche of principal and interest, valued at about SDR 329.62 million ($446.21 million), is due in 2025. The remaining repayments over the next four years will cover annual charges and interest estimated at SDR 26.7 million ($36.14 million) per year.
The RFI loan was fully disbursed on April 30, 2020, at the height of the COVID-19 pandemic. It was designed to cushion Nigeria’s economy from the pandemic’s shockwaves—specifically, falling crude oil prices, shrinking GDP, and widening fiscal deficits. The loan came with minimal conditionalities and no structural adjustment requirements, allowing Nigeria to quickly access vital funds during a national emergency.
The repayment progress reflects positively on Nigeria’s external debt management. Data shows that the country’s debt to the IMF declined significantly from $2.47 billion in 2023 to $800.23 million by the end of 2024—a 67.6% reduction driven by principal repayments. Notably, debt servicing to the IMF surged to $1.63 billion in 2024, forming 35% of Nigeria’s total external debt servicing for the year and 62% of payments to multilateral lenders.
Analysts note that completing the IMF repayment without refinancing or restructuring enhances Nigeria’s sovereign credit profile and improves investor sentiment. According to the World Bank, Nigeria is expected to record a current account surplus by 2026, a development attributed to improved oil earnings and increased diaspora remittances.
Additionally, Nigeria’s fiscal outlook has improved due to recent policy reforms. These include the unification of the foreign exchange market, the removal of costly petrol subsidies, and tax reform efforts aimed at boosting revenue collection. The World Bank projects Nigeria’s GDP will grow by 3.6% in 2025, while the IMF forecasts a more cautious 3.0% growth rate.
Despite persistent inflation—currently at 24.23% as of March 2025—there are signs of easing price pressures. External reserves have remained stable, further supporting the country’s ability to meet its international financial obligations.
However, challenges remain. Analysts warn that global oil market volatility, insecurity, and domestic policy missteps could disrupt the repayment plan. The government is therefore under pressure to sustain reform momentum, diversify the economy, and mitigate fiscal risks.
In a recent assessment, the IMF acknowledged Nigeria’s commendable progress in maintaining macroeconomic stability but emphasized the need for deeper structural reforms. It advised the government to continue building fiscal buffers, improving transparency, and strengthening governance to safeguard long-term economic resilience.
If Nigeria successfully concludes the IMF repayment by 2029, it would mark a critical turning point in its fiscal recovery and credibility on the global financial stage.