Nigeria Clears $1.61bn IMF Debt, Exits List of Debtor Nations
By Joseph Iyaji | Akahi News
Nigeria has fully settled its $1.61 billion debt to the International Monetary Fund (IMF), officially removing itself from the fund’s list of indebted countries. This marks a significant milestone in the nation’s fiscal management and economic reform efforts under President Bola Tinubu’s administration.
The development was confirmed in the IMF’s latest report titled “Total IMF Credit Outstanding – Movement from May 01, 2025 to May 06, 2025”, which shows Nigeria absent from the list of 91 developing and least developed countries owing the fund a total of $117.8 billion as of May 6, 2025.
Nigeria’s Debt Repayment Timeline
Akahi News gathered that as of July 28, 2023, Nigeria’s outstanding IMF debt stood at $1.61 billion. This figure fell to $1.37 billion by January 5, 2024; $933.03 million as of July 10, 2024; and $472.06 million by January 8, 2025, before the final repayment was completed this month.
The figures were converted from Special Drawing Rights (SDR)—an international reserve asset created by the IMF—into US dollars.
While the IMF headquarters in Washington DC confirmed efforts to verify the reports, a senior official who spoke on condition of anonymity told newsmen that the loan in question was secured during the COVID-19 pandemic through a rapid financing facility.
Tinubu Administration Hails Milestone
Reacting to the development, O’tega Ogra, Senior Special Assistant to the President on Digital Engagement, Strategy, and New Media, described the debt clearance as a reflection of “discipline, reform, and strategic reset” in Nigeria’s public finance management.
In a post on X, Ogra stated:
“As Nigeria closes the chapter on these legacy debt obligations, we are better placed to strengthen our fiscal credibility and show the world, and ourselves, that Nigeria is serious about managing our economy with responsibility and vision.”
He emphasised that the move does not mark an end to Nigeria’s relationship with the IMF, noting that future engagements would be proactive and based on partnership rather than dependence.
IMF Commends Nigeria’s Economic Reforms
The IMF recently lauded Nigeria’s bold economic reforms, particularly the removal of fuel subsidies, the cessation of deficit financing by the Central Bank of Nigeria (CBN), and improvements in the foreign exchange market.
In its 2025 Article IV Consultation Mission to Nigeria, led by Axel Schimmelpfennig, the IMF stated that the reforms had helped stabilise the economy and laid the groundwork for future growth.
“The Nigerian authorities have taken important steps to stabilise the economy, enhance resilience, and support growth. These reforms have put Nigeria in a better position to navigate the external environment,” the IMF noted.
However, the multilateral lender also cautioned that the macroeconomic outlook remains uncertain, citing elevated global risks and declining oil prices as challenges that could impact Nigeria’s economy.
A New Era of Fiscal Responsibility
With this debt repayment, the Tinubu administration has signalled its commitment to long-term reforms, stronger fiscal discipline, and improved economic governance—steps widely viewed as essential for attracting foreign investment and driving sustainable growth.
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