In a major financial milestone, the Nigerian government has officially paid off the $3.4 billion loan it received from the International Monetary Fund (IMF) during the height of the COVID-19 pandemic.
This development was confirmed by the Minister of Information and National Orientation, Mohammed Idris, during a press briefing following Monday’s Federal Executive Council meeting at the State House in Abuja.
The repayment marks Nigeria’s exit from the IMF’s debtor list, a significant move that experts say could bolster the country’s financial reputation on the global stage.
According to the IMF’s latest “Total IMF Credit Outstanding” report, Nigeria is no longer among the 91 developing nations with outstanding debts to the institution as of May 2025.
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The loan, originally secured in 2020 to help the country weather the economic fallout from the pandemic, has now been fully repaid following a two-year financial reform initiative.
Nigeria began aggressively addressing its debt in 2023 when the balance stood at $1.61 billion. By January 2025, it had dropped to $472 million — and now, the full amount has been settled.
Economists and policymakers have praised the move as a turning point in Nigeria’s fiscal journey, stating it demonstrates commitment to financial discipline and strategic economic planning. The cleared debt also eases the burden of legacy liabilities and could open the door to more favorable terms in future negotiations with international lenders.
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However, while the financial achievement has been welcomed, it also reignited scrutiny over how the emergency funds were used. Prominent human rights lawyer, Femi Falana (SAN), has called for an urgent investigation into the alleged diversion of the $3.4 billion loan.
In a statement issued on behalf of the Alliance on Surviving COVID-19 and Beyond (ASCAB), Falana urged Nigeria’s anti-graft agencies — the EFCC and ICPC — to probe claims that the funds may not have been utilized as intended.
Falana also appealed to the IMF to conduct an internal audit into whether its management adequately ensured the loan was spent on pandemic-related relief.
He further requested that the IMF suspend all remaining charges and fees — including basic interest, administrative fees, and net charges amounting to SDR 125.99 million (approximately ₦275.28 billion) — until a full investigation is completed.
While the repayment strengthens Nigeria’s financial standing, the demand for transparency underscores ongoing concerns about accountability in public fund management, particularly during times of crisis.
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