Nigeria has cleared $3.4bn COVID-19 loan but has $30m charges to be paid yearly – IMF

The International Monetary Fund (IMF) has confirmed that Nigeria has completed repayment of the $3.4 billion loan secured in 2020 to cushion the economic shocks caused by the COVID-19 pandemic and the steep drop in oil prices. 

However, the country is still expected to pay an annual charge of $30 million in Special Drawing Rights (SDR) as part of the terms associated with the loan.

The SDR is the IMF’s international reserve asset, valued based on a currency basket comprising the US dollar, euro, Chinese renminbi, Japanese yen, and British pound sterling. Charges are levied on the cost of borrowing from the IMF and are expressed in SDR.

According to data published Thursday by the IMF, Nigeria made the repayments in three tranches: SDR613.62 million in 2023, SDR1.22 billion in 2024, and SDR613.62 million in 2025. In a statement, the 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.”

Despite clearing the loan, Nigeria is expected to continue making annual payments of about $30 million in SDR charges. These charges apply due to the difference between the country’s current SDR holdings of SDR3,164 million (US$4.3 billion) and its cumulative SDR allocation of SDR4,027 million (US$5.5 billion).

The IMF noted that the charges, updated weekly in line with its Articles of Agreement, will cease once Nigeria’s SDR holdings equal its cumulative allocation.