Nigeria has cleared its $3.4 billion IMF loan principal but still owes N275 billion in interest through 2029.
Nigeria has fully repaid the $3.4 billion emergency loan it secured from the International Monetary Fund (IMF) during the COVID-19 pandemic, marking a significant milestone. The final instalment was settled in April, removing the country from the IMF’s debtors list in May. President Bola Tinubu’s adviser, Otega Ogra, confirmed the development, celebrating Nigeria’s first debt-free status with the IMF since 2020. However, while the principal has been cleared, the country still owes millions in interest payments, classified as “charges,” which will continue until 2029.
The loan, disbursed in April 2020 under the IMF’s Rapid Financing Instrument (RFI), was repaid ahead of schedule. Despite clearing the principal, Nigeria’s outstanding interest stands at SDR 125.99 million (about N275.28 billion), payable in quarterly instalments. The IMF’s records show projected payments of SDR 22.35 million in 2025 and roughly SDR 25.9 million annually from 2026 to 2029. These charges stem from the loan’s 3.6% annual interest rate, tied to the SDR rate plus a fixed IMF margin.
While Nigeria faces no penalties or surcharges, the remaining interest underscores the full cost of borrowing. The IMF’s “Projected Payments” tables confirm that Nigeria’s principal balance is zero, but scheduled charges remain. The celebratory headlines reflect a major fiscal achievement, yet the lingering payments remind stakeholders that the financial obligation isn’t entirely over.