The International Monetary Fund (IMF) confirmed on Thursday that Nigeria has fully repaid the $3.4 billion COVID-19 financial assistance received through the Rapid Financing Instrument (RFI).
This loan, granted in 2020 to help mitigate the economic impact of the pandemic, has now been cleared.
IMF said, “As of April 30, 2025, Nigeria has fully repaid the financial support of about US$3.4 billion it requested and received in April 2020 from the International Monetary Fund (IMF) under the Rapid Financing Instrument to help alleviate the impact of the COVID-19 pandemic and the sharp fall in oil prices.”
However, despite this repayment, Nigeria remains indebted to the IMF for an additional amount related to Special Drawing Rights (SDR) charges, which total approximately $30 million annually.
The $30 million, equivalent to N48.2 billion, is to be paid annually over the next four years, resulting in a cumulative sum of over N190 billion. These charges stem from the difference between Nigeria’s SDR holdings and its cumulative SDR allocation.
The IMF explained that SDRs are a form of international reserve assets, which represent a claim on the currency held by IMF member countries.
IMF said, “Nigeria is expected to honor some additional payments in the form of Special Drawing Rights charges of about US$30 million annually. In line with the IMF’s Articles of Agreements, these charges, levied at the SDR interest rate, which is updated at the beginning of each week, apply to the difference between Nigeria’s SDR holdings (SDR 3,164 million) (US$4.3 billion) and its cumulative SDR allocation (SDR 4,027 million) (US$5.5 billion) The net payment of the charges stops when Nigeria’s SDR holdings reach the cumulative allocation amount.”
