Contrary to widespread reports that Nigeria has been removed from the International Monetary Fund’s (IMF) debtors list following the repayment of its $3.4 billion COVID-19 emergency loan, new findings have revealed that the country still owes significant interest payments on the loan.
While the IMF confirmed that Nigeria had settled the principal loan amount in April 2025, leading to its removal from the official debtors list published in May, the Foundation for Investigative Journalism (FIJ) has reported that Nigeria continues to owe Special Drawing Rights (SDR) 125.99 million — the equivalent of millions of dollars — in interest charges that will be paid in installments through 2029.
These charges include:
- SDR 22.35 million in 2025
- SDR 25.9 million annually from 2026 to 2029
The confusion began after a senior presidential aide, Otega Ogra, celebrated Nigeria’s removal from the IMF’s debtors list on social media, sparking praise for the Tinubu administration. However, experts noted that the IMF’s debtors list only reflects unpaid principal, not interest obligations — which are tracked separately.
The interest rate on the loan includes a basic charge tied to the SDR rate (about 3.0%) plus a 0.6% fixed margin, bringing Nigeria’s effective interest rate to approximately 3.6% annually. The charges are spread across quarterly installments and were agreed upon when the loan was first obtained.
The IMF had disbursed the loan in 2020 to support Nigeria’s economy during the COVID-19 pandemic, under its Rapid Financing Instrument (RFI).
Though the principal has been repaid, financial analysts caution that the continuing interest burden should not be overlooked, especially amid Nigeria’s broader debt servicing challenges.
Would you like a breakdown of the interest payment timeline or how it affects Nigeria’s future fiscal planning?
