The Federal Government has confirmed the complete repayment of a $3.4 billion loan obtained from the International Monetary Fund (IMF) to combat the COVID-19 pandemic, marking a significant milestone in Nigeria’s fiscal recovery. Minister of Information and National Orientation, Mohammed Idris, announced the achievement during a briefing following the Federal Executive Council meeting at the State House, Abuja, on Monday.
The repayment, finalized as of May 2025, removes Nigeria from the IMF’s list of 91 developing nations with outstanding credit, according to the IMF’s “Total IMF Credit Outstanding” report. The journey to clear the debt began in 2023, when Nigeria’s IMF obligations stood at $1.61 billion. Through disciplined fiscal measures, the debt was reduced to $472 million by January 2025 and fully settled this month, signaling robust financial management and boosting Nigeria’s global economic standing.
Analysts have hailed the repayment as a turning point, with Nigeria now free of its IMF debt obligations, a process that underscores the nation’s commitment to fiscal discipline since the pandemic-era borrowing.
However, the milestone has been overshadowed by allegations of mismanagement. Human Rights lawyer Femi Falana, SAN, representing the Alliance on Surviving COVID-19 and Beyond (ASCAB), called on Sunday for the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate claims of criminal diversion of the $3.4 billion loan. Falana also urged the IMF to probe its management’s alleged failure to ensure the funds were used for their intended purposes.
Additionally, Falana demanded that the IMF suspend collection of scheduled charges, including net charges, basic interest, and administrative fees totaling SDR 125.99 million (approximately N275.28 billion), pending the outcome of the investigation.
