The International Monetary Fund (IMF) has officially removed Nigeria from its list of debtor countries, following the final repayment of the $3.4 billion Rapid Financing Instrument (RFI) loan the country obtained in 2020 during the COVID-19 crisis.
The development, confirmed by the IMF in its May 6, 2025 update titled “Total IMF Credit Outstanding – Movement from May 01, 2025 to May 06, 2025,” shows Nigeria is no longer among the 91 developing and least-developed nations with outstanding obligations totaling $117.8 billion.
Presidential aides and government supporters have quickly seized the opportunity to trumpet the development as a hallmark of fiscal discipline under President Bola Tinubu. But financial analysts and economists familiar with the structure of the IMF’s emergency lending framework say this is not an achievement that warrants celebration. They note that the repayment was an obligation with a clear deadline and not a result of exceptional performance by the current administration.
“Both sides, move on, nothing to see here. A loan that was to be repaid by a set date has been repaid. Nigeria has gone back to not having any IMF loan,” economist Kalu Aja said, brushing aside the fanfare.
The Loan Nigeria Had to Take — and Had to Repay
The $3.4 billion Nigeria borrowed under the IMF’s Rapid Financing Instrument was not a traditional loan. It was a special emergency package made available to IMF member countries facing balance of payment challenges triggered by the pandemic. At the time of application in April 2020, Nigeria’s economy was reeling from an oil price collapse that drastically cut government revenue, prompting then-President Muhammadu Buhari’s administration to seek immediate support.
Crucially, Nigeria had no outstanding loan with the IMF before this disbursement. The last formal IMF loan Nigeria took dates back to 2000. The RFI disbursement was unprecedented, not only in size but also in its leniency—a 1% interest rate, a five-year tenor, and no structural adjustment conditions. Repayments were allowed to begin after three years and had to be completed by 2025. That repayment timeline was automatic and binding.
An analyst said it is not a traditional IMF programme, as it came with no conditionalities, no quarterly reviews, no policy benchmarks—just an emergency injection of funds. This implies that you can’t call repaying it an economic masterstroke. It was simply due.
A Convenient Victory Lap?
Despite the nature of the loan, the Tinubu administration has turned the repayment into a public relations moment. Presidential aide O’tega Ogra, in a post on X, portrayed the development as the fruit of fiscal responsibility, reform, and strategic reset under Tinubu.
“We are better placed to strengthen our fiscal credibility,” Ogra wrote. “Nigeria is rising with clarity, capacity, and credibility.”
The presidency insists this is more than just closing a loan book—it’s a reflection of a shift in mindset. According to Ogra, future engagements with the IMF or other global lenders will be “proactive, not reactive,” and built on “partnership, not dependence.”
But this perspective clashes with how the IMF system works. The fund’s rapid credit facilities are designed precisely for temporary shocks. They are short-term tools that countries repay as they regain footing. Nigeria’s repayment, critics argue, is not proof of robust fiscal management but a sign the clock simply ran out.
A Reminder: Nigeria Rarely Borrows From the IMF
Nigeria’s use of IMF credit is historically minimal. The RFI loan was the first IMF borrowing since 2000, and its disbursement during the pandemic was more of the exception than the norm. In fact, the $3.4 billion Nigeria accessed in 2020 represented the full 100% of its IMF quota—a bold move necessitated by the fiscal shock of plummeting oil prices.
Data tracked by StatiSense shows Nigeria’s debt to the IMF dropped steadily from $1.61 billion as of July 2023 to $1.37 billion in January 2024, $933 million in July 2024, and $472 million by January 2025, culminating in full repayment in early May. The IMF account was settled without fanfare from the Fund, which often treats RFI repayments as procedural milestones, not markers of policy excellence.
Moreover, the repayment bears no similarity to Nigeria’s expensive Eurobond debts or China EXIM loans, both of which come with high interest rates and longer tenors. The RFI was closer to a financial breathing space than an investment in development.
IMF Still Has Praise—Cautiously
Despite the divergence in how the government and economists perceive the loan clearance, the IMF has in recent months commended Nigeria’s reform path. In its 2025 Article IV Consultation Mission, the IMF team led by Axel Schimmelpfennig acknowledged “important steps” by the Nigerian government to stabilize the economy and support growth. These included the cessation of deficit financing by the Central Bank, removal of fuel subsidies, and reforms in the foreign exchange market.
However, the Fund also highlighted enduring vulnerabilities: “The macroeconomic outlook is marked by significant uncertainty,” the IMF said. “Macroeconomic policies need to further strengthen buffers and resilience, reduce inflation, and support private sector-led growth.”
That cautious optimism stands in contrast to the unrestrained jubilation among presidential aides.
However, Nigeria’s exit from the IMF debtor list does not close the door to future engagement. The country remains a full member of the IMF and retains the option of seeking credit again if economic conditions worsen.
