Nigeria completes the main reimbursement of the FMI loan of $ 3.4 billion

Nigeria has completed the reimbursement of the main amount of its loan of $ 3.4 billion from the International Monetary Fund, with the final payment made on April 30, 2025, according to a punch ratio.

The loan, fully paid on April 30, 2020, was part of the rapid emergency financing tool of the IMF COVID-19, aimed at helping Nigeria to cope with the economic interruptions caused by the pandemic, including in decline in oil prices, a recession and tax pressure.

Although the main reimbursement has been completely resolved, different accusations associated with the loan remain due.

These expenses, which mainly consist of interest, will continue to be reimbursed every year for the next few years.

In 2025, the charge of loan in Nigeria for the loan is SDR 6,548,785 (approximately $ 8.84 million) expiring in May, with additional costs in August and November, bringing the total charge for 2025 to DDS 22,348,146 (about $ 30.24 million).

The expenses will remain consistent until 2029, with annual payments for each year ranging from SDR 25,912,903 in 2026 and 2027 to SDR 25,924,726 in 2028 and SDR 25,901,079 in 2029.

Further checks showed that the charges included SDR net charges, the basic charges of the Grand and the DSP assessments.

The term net charges SDR refers to the interest and associated commissions collected by the IMF on the member countries who borrowed resources from the IMF, called in special drawing rights.

The basic charges of the GR refer to the standard interests and associated commissions applied by the FMI on the loans issued by their own account of the general resources.

SDR assessments are annual taxes collected by the FMI on the member countries participating in the SDR department.

These expenses reflect on the current interest payments that Nigeria will have to make on the loan in the next five years.

While the main refund has been completed, the interest and costs of the IMF continue to accumulate every year, further extending the financial commitments of Nigeria.

Despite these ongoing accusations, the refund of the principal is a significant result for Nigeria, with the complete reimbursement of the main amount of $ 3.4 billion which affirms the progress of Nigeria in satisfying their external debt obligations.

However, the continuous financial liability for interest payments highlights the complexities involved in the management of long -term loans reimbursements.

The Debt service to the IMF has increased to $ 1.63 billion in 2024, made up entirely of main reimbursements, without interest or other registered expenses.

The total maintenance of the country’s external debt for 2024 amounted to $ 4.66 billion, compared to $ 3.5 billion in 2023.

Of this, multilateral creditors represented the largest part at $ 2.62 billion or 56 % of the total.

The only share of the IMF represented 35 % of the total maintenance of the external debt of Nigeria in 2024 and about 62 % of the total paid to multilateral financiers.

In addition, the debt of Nigeria towards the IMF dropped significantly from $ 2.47 billion in 2023 to $ 800.23 million in 2024-A 67.6 percent reduction, or $ 1.67 billion, probably linked to reimbursement on the emergency and on the support structure of the budget paid in 2020. [The Punch]