Nigeria off IMF debtor list, clears debt

Nigeria has been officially removed by the International Monetary Fund (IMF) from its list of debtor-countries.

In a report titled ‘Total IMF Credit Outstanding – Movement from May 01, 2025 to May 06, 2025,’ obtained from the IMF website yesterday, Nigeria’s name was missing from the list of 91 developing and least developed countries that collectively owe the Fund over $117.79 billion as of May 6, 2025.

The Total IMF Credit Outstanding refers to the total unpaid principal owed to the Fund by its member nations. This includes both active loans and those from expired arrangements.

When contacted for comments on this development, a top IMF official in Washington D.C., who preferred to remain anonymous, confirmed that the Fund was still verifying the reports. The official recalled that Nigeria secured a rapid financing facility from the IMF during the pandemic period.

Meanwhile, StatiSense, a data analytics company, also confirmed the news via its official X handle, stating that Nigeria, which owed the IMF $1.61 billion as of July 28, 2023, gradually reduced its debt to $1.37 billion by January 5, 2024; $933.03 million by July 10, 2024; $472.06 million by January 8, 2025, before clearing the outstanding balance this May. The figures, originally in Special Drawing Rights (SDR)—an international reserve asset created by the IMF—were converted to US dollars.

Reacting to the development, Senior Special Assistant to the President on Digital Engagement, Strategy, and New Media, O’tega Ogra, described it as a demonstration of financial discipline, reform, and strategic restructuring under the Tinubu-Shettima government. He noted that settling the debt was a deliberate move to strengthen Nigeria’s fiscal credibility and future prospects.

Ogra wrote on his X handle, “As Nigeria closes the chapter on these legacy debt obligations, we are better placed to strengthen our fiscal credibility and show the world, and ourselves, that Nigeria is serious about managing our economy with responsibility and vision.”

He clarified that Nigeria’s exit from the IMF debtor list did not signal the end of future engagements with the institution. According to him, Nigeria remains a member of the IMF and can seek support when necessary, adding that future engagements would be proactive, not reactive, and based on partnership rather than dependence.

He further noted, “Debt clearance today, reform momentum tomorrow. President Bola Tinubu will continue to prioritise long-term reforms with sound financial management for the benefit of our country and generations yet unborn. Nigeria is rising with clarity, capacity, and credibility — and this is why you should take a #BetOnNigeria.”

The IMF had in its recent 2025 Article IV Consultation Mission to Nigeria, led by Axel Schimmelpfennig, commended the Nigerian government for its economic reforms. The Fund described these policies as bold moves that have stabilised the economy and created a stronger foundation for future growth.

According to the IMF’s findings, although Nigeria still faces considerable economic uncertainties driven by global market risks and fluctuating oil prices, the government’s decision to halt deficit financing by the Central Bank of Nigeria (CBN), remove costly fuel subsidies, and improve the foreign exchange market showed clear commitment to reform.

Schimmelpfennig noted, “The Nigerian authorities have taken important steps to stabilise the economy, enhance resilience, and support growth. The financing of the fiscal deficit by the central bank has ceased, costly fuel subsidies were removed, and the functioning of the foreign exchange market has improved.”

The IMF urged Nigeria to continue reinforcing economic buffers, lowering inflation, and supporting private sector-led growth to better navigate external challenges in the coming years.