Friday, 09 May 2025 05:03

Nigeria repays $3.4bn COVID-19 loan to IMF, but annual $30m charges remain

Rate this item
(0 votes)

The International Monetary Fund (IMF) has confirmed that Nigeria has fully repaid the $3.4 billion emergency loan it received in 2020 to cushion the economic impact of the COVID-19 pandemic and the sharp decline in global oil prices. The financing, provided under the IMF’s Rapid Financing Instrument (RFI), was disbursed in April 2020 to help Africa’s largest oil producer address severe balance of payments needs during the global crisis.

In a statement released on Thursday, IMF resident representative to Nigeria, Christian Ebeke, said that as of April 30, 2025, the country had completed repayment of the facility. The IMF’s data shows the loan was repaid in tranches of SDR 613.62 million in 2023, SDR 1.22 billion in 2024, and SDR 613.62 million in 2025.

However, Nigeria will continue to make annual payments of approximately $30 million in Special Drawing Rights (SDR) charges. These charges, which represent the cost of borrowing from the IMF, are calculated based on the difference between Nigeria’s current SDR holdings and its cumulative SDR allocation.

The IMF explained that the charges are levied at the SDR interest rate, which is updated weekly, and will continue until Nigeria’s SDR holdings (currently SDR 3.164 billion or $4.3 billion) match its total allocation (SDR 4.027 billion or $5.5 billion).

Despite the full repayment of the principal loan, Nigeria’s foreign debt servicing costs remain high. According to the Debt Management Office, the country spent $4.66 billion on external debt servicing in 2024, including $1.63 billion paid to the IMF.

May 20, 2025

Marketers import N436bn petrol in 9 days as battle with Dangote Refinery intensifies

A fresh wave of Premium Motor Spirit (petrol) importation into the country has made the…
May 12, 2025

Northern leaders demand urgent action on insecurity, push for state police

Amid worsening insecurity across Nigeria, the 19 Northern governors and traditional rulers have called for…
May 21, 2025

Too much protein could actually shorten your lifespan, according to longevity experts

Key Takeaways Overconsumption of animal-based protein raises IGF-1 levels—a growth hormone linked to increased risk…
May 17, 2025

Woman files for divorce after ChatGPT read husband’s affair in coffee cup

A Greek woman decided to divorce her husband of 12 years after ChatGPT told her…
May 20, 2025

At least 20,000 flee insurgency-hit town in Borno, governor says

At least 20,000 people have fled Marte town following increasing attacks by Islamist militants in…
May 21, 2025

What to know after Day 1182 of Russia-Ukraine war

WESTERN PERSPECTIVE EU, Britain go ahead with new Russia sanctions without waiting for Trump The…
May 11, 2025

African diet – plantains and cassava can be as healthy as tomatoes and olive oil,…

Plantains, cassava and fermented banana drink should be added to global healthy eating guidelines alongside…
May 13, 2025

Nigeria's Flying Eagles qualify for World Cup after dramatic win over Senegal

Nigeria's U-20 national football team, the Flying Eagles, have secured their place at the 2025…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2025 NewsScroll. All rights reserved.