May 08, 2025
By Adedoja Adesoji
President Bola Tinubu’ led administration has completed the repayment of the principal amount of its $3.4 billion loan from the International Monetary Fund (IMF).
The final payment was made on April 30, 2025.
The loan was part of the IMF’s emergency COVID-19 Rapid Financing Instrument, aimed at helping Nigeria cope with the economic disruptions caused by the pandemic.
Although the principal repayment has been fully settled, several charges associated with the loan remain due.
These charges include interest and fees levied by the IMF, which will continue to be repaid annually for the next few years.
The charges comprise Net SDR Charges, GRA Basic Charges, and SDR Assessments.
The Nigerian Government’s completion of the principal repayment marks a significant milestone in its efforts to manage its debt obligations.
However, the country still needs to settle the outstanding charges associated with the loan.
The loan was disbursed in full on April 30, 2020, and was intended to support Nigeria’s economic recovery from the pandemic.
The repayment of the principal amount demonstrates the government’s commitment to fulfilling its financial obligations.
As Nigeria continues to navigate its economic challenges, the country will need to prioritize its debt management and ensure timely repayment of outstanding charges.
The Government will need to balance its financial obligations with its development goals and priorities.
The completion of the principal repayment is a positive development for Nigeria’s economy, and the Government will need to build on this momentum to achieve long-term economic stability and growth.
