The Federal Government has officially confirmed the full repayment of the $3.4 billion loan obtained from the International Monetary Fund (IMF) during the COVID-19 pandemic, Minister of Information and National Orientation Mohammed Idris announced on Monday.
The confirmation came during a briefing with State House correspondents following the Federal Executive Council (FEC) meeting in Abuja. This repayment marks Nigeria's exit from the IMF's debtor list, as the country no longer appears among the 91 developing nations with outstanding credit obligations to the international financial institution.
According to reports, Nigeria's debt clearance journey began in 2023 when the nation's IMF debt stood at $1.61 billion. Through disciplined fiscal reforms, the debt steadily declined to $472 million by January 2025, before being completely settled by May 2025.
The final settlement not only removes the burden of legacy debt but also strengthens Nigeria's position in the global economic landscape, potentially improving the country's credit rating and borrowing capacity.
Calls for Investigation
Despite the loan repayment, human rights lawyer Femi Falana, SAN, has called for an investigation into the alleged diversion of the funds. Representing the Alliance on Surviving COVID-19 and Beyond (ASCAB), Falana urged the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate how the loan was utilized.
Falana also called on the IMF board to probe the alleged deliberate refusal of its management to ensure that the emergency funds were "used for their intended purposes." The senior lawyer further urged the IMF to suspend the collection of scheduled charges, including net charges, basic interest, and administrative fees, amounting to SDR 125.99 million (N275.28 billion) pending the conclusion of its investigation.
The $3.4 billion emergency loan was approved by the IMF in April 2020 under the Rapid Financing Instrument to help Nigeria address the severe economic impact of the COVID-19 pandemic and the sharp fall in oil prices at that time.
The government has not yet responded to Falana's allegations regarding the utilization of the funds, focusing instead on highlighting the achievement of clearing the debt obligation ahead of schedule.
