Nigeria has officially exited the International Monetary Fund’s (IMF) debtor list following the full repayment of a $3.4 billion emergency loan secured during the COVID-19 pandemic.

The facility, obtained under the IMF’s Rapid Financing Instrument (RFI) in 2020, was designed to help Nigeria cushion the economic shocks of the global health crisis.

The IMF confirmed this week that Nigeria has cleared the outstanding principal, prompting its removal from the Fund’s latest list of countries with active credit obligations.

According to the IMF’s report, “Total IMF Credit Outstanding – Movement from May 1 to May 6, 2025,” Nigeria no longer appears among the 91 developing and least-developed countries with outstanding obligations.

This development strengthens Nigeria’s fiscal credibility, potentially improving investor confidence and reducing the country’s cost of borrowing.

The move comes at a time when the federal government is pushing for stronger economic reforms to restore stability to public finances and attract foreign investment.

However, while the repayment marks a milestone, the IMF clarified that Nigeria will continue to service interest charges and related fees tied to the loan, particularly through Special Drawing Rights (SDRs).

This is a routine process even after clearing principal balances.

In addition, Nigeria still faces broader debt obligations to other multilateral, bilateral, and private lenders.

Following the repayment, Nigeria becomes one of the few African nations to fully liquidate its COVID-era IMF borrowing.