The Federal Government has fully repaid the $3.4bn emergency loan it secured from the International Monetary Fund (IMF) during the COVID-19 pandemic, a move officials say is restoring global confidence in Nigeria's economy and creating room for increased private sector investment.
Minister of Information and National Orientation, Mohammed Idris, announced the repayment on Monday after the 27th meeting of the Federal Executive Council (FEC) at the Aso Rock Villa. He said the decision, approved by President Bola Tinubu, is part of efforts to settle financial obligations inherited from past administrations.
"President Tinubu believes government is a continuum. In line with that philosophy, he gave clear instructions that Nigeria must exit the IMF facility. I am pleased to report that the $3.4bn debt has now been paid in full," Idris said.
He added that the repayment has already improved Nigeria's image among global investors, which could lead to better access to international funding and partnerships—an encouraging signal for small business owners seeking financing or expansion opportunities.
"This move boosts Nigeria's international credibility. It signals to investors that the country honours its debt commitments and strengthens our position in the global financial system," he said.
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Nigeria originally accessed the IMF's Rapid Financing Instrument in April 2020 to cushion the impact of the pandemic and oil-price crash. The loan was structured to be repaid over five years, but the country completed payments one quarter ahead of schedule.
Data from the Debt Management Office shows that Nigeria returned $1.22bn in the first nine months of 2023, reducing the balance from $3.26bn in June 2023 to just $472m by January 2025. The final instalment was paid in April 2025, according to confirmation from the IMF.
Although principal repayment is complete, Nigeria will continue to pay about $30m annually in Special Drawing Rights charges until 2029.
Beyond debt repayment, Idris also revealed that the government is now actively encouraging greater private sector involvement in infrastructure development. This includes road construction—an area that could offer business opportunities to local contractors, suppliers, and service providers.
"There is a notable appetite from private sector players to participate in infrastructure delivery. The government has now directed all relevant agencies to support such participation," he said.
However, he raised concern over the increasing theft of metallic components from bridges and manhole covers, noting that President Tinubu has asked the Attorney-General to review existing laws and recommend tougher penalties.
To fast-track decisions on infrastructure and other key matters, Idris noted that FEC meetings will now be held more frequently.
