IMF Delists Nigeria From Debtors List After Pandemic Loan Repayment, Analysts Say It’s Not A Triumph

The International Monetary Fund (IMF) has officially removed Nigeria from the debtor's list of countries, following the final payment of the country's $ 3.4 billion fast financing instrument (RFI) loan to the country earned in 2020 during the Covid-19 crisis.

Development, confirmed by the IMF on May 6, 2025 update titled “Total IMF Credit Outstanding-Kilusan from May 01, 2025 to May 06, 2025,” shows Nigeria no longer among 91 developing and at least countries with remaining obligations worth $ 117.8 billion.

The aids of the president and government supporters quickly seized the opportunity to develop the development as a sign of fiscal discipline under President Ball Tinubu. But the financial analysts and economists familiar with the IMF's emergency lending structure say it is not a success that puts the festival. They noted that payment is an obligation with a clear deadline and not a result of the current administration's exceptional performance.

“Both sides, move, nothing will be seen here. A loan that must be repaid by a set date has been paid. Nigeria returns to not having any IMF loan,” said economist Kalu Aja, who submits Fanfare.

Nigeria's debt has to take – and have to pay

The $ 3.4 billion Nigeria borrowed under a quick IMF funding instrument is not a traditional loan. This is a special emergency package available to IMF member countries faced with the balance of payment challenges that are pandemic. At the time of application in April 2020, the Nigeria economy was emerging from the downfall of oil prices that drastically cut government revenue, prompting the president Muhammadu Buri to seek immediate support.

Crucially, Nigeria has no IMF loan left before this disbursement. The last formal IMF loan was taken by Nigeria to dates in 2000. RFI's disbursement has not occurred, not only in size but also in its mildness-a 1% interest rate, a five-year tenor, and no structural adjustment conditions. Payments are allowed to start after three years and will need to be completed by 2025. That payment timeline is automatic and binding.

An analyst said this is not a traditional IMF program, because there are no conditions, no quarterly tests, no policy benchmarks – an emergency injection of funds. This implies that you cannot call it paying an economic mastertroke. It's simple because.

A convenient lap of success?

Despite the nature of the loan, the Tinubu administration has been paying for a moment of public relations. The aide of President O'Tega Ogra, in an X post, describes the development as a result of the responsibility of fiscal, reform, and strategic resetting under the naive.

“We are better placed to strengthen our fiscal credibility,” Ogra wrote. “Nigeria rises with clarity, capacity, and credibility.”

This presidency insists that it is more than closing a loan book – this is a mirror of a move to the mindset. According to Ogra, future relationships with the IMF or other global lenders will be “active, non -reactive,” and built in “collaboration, not hoping.”

But this perspective argues with how the IMF system works. The fast fund credit facility is designed precisely for temporary shocks. These are short -term tools that the countries pay as they recover the walk. Payment of Nigeria, critics argue, is not proof of stable fiscal management but a clock is only ran out.

A Note: Nigeria rarely borrowed from IMF

Nigeria's use of IMF credit is minimal history. The RFI loan has been the IMF's first borrowing since 2000, and its disbursement during the Pandemya period is more than exclusion than the norm. In fact, the $ 3.4 billion Nigeria that was accessible in 2020 represents the full 100% of its IMF quota – a brave move that the fiscal shock of the collapse of oil prices is.

Data monitored by Statisense shows Nigeria debt in the IMF from $ 1.61 billion to July 2023 to $ 1.37 billion in January 2024, $ 933 million in July 2024, and $ 472 million in January 2025, ending in full payment in early May. The IMF account is fixed without a fanfare from the fund, which often treats RFI payments as milestone in the procedure, not policy efficiency markers.

Moreover, the payment has no similarity to the expensive Eurobond debt of Nigeria or China Exim loans, both with high interest rates and longer tenors. RFI is closer to a financial breathing space than a developmental investment.

IMF still has praise – cautiously

Despite the difference between how the government and economists see the loan clearance, the IMF has been in recent months of praising the path of reform in Nigeria. In his 2025 Article IV Consultation Mission, the IMF team led by Axel Schimmelpfennig recognized the “important steps” of the Nigerian government to strengthen the economy and support growth. This includes cessation of Central Bank financing deficiency, removal of fuel subsidies, and foreign exchange market reforms.

However, the fund also highlights endless weaknesses: “Macroeconomic's view is marked by significant uncertainty,” the IMF said. “Macroeconomic policies need to further strengthen buffers and elastic, reduce inflation, and support private sector growth.”

This careful optimization stands in contrast to uncontrollable jubilation to the president's aids.

However, the release of Nigeria from the IMF debt list does not close the future interaction door. The country remains an entire member of the IMF and maintains the option of searching credit if economic conditions worsen.