Nigeria Clears IMF Debt Under Tinubu, Signals New Era Of Fiscal Discipline
Abuja, Nigeria | Saturday, May 11, 2025 — 09:30 AM (WAT)
Nigeria has officially cleared its debt to the International Monetary Fund (IMF), exiting the Fund’s list of debtor nations for the first time since 2020. This major financial milestone, confirmed late Friday, May 10, is being widely regarded as a breakthrough in President Bola Ahmed Tinubu’s broader economic reform agenda aimed at restoring fiscal stability and investor confidence.
The repayment covers the $3.4 billion loan disbursed to Nigeria under the IMF’s Rapid Financing Instrument (RFI) during the COVID-19 crisis in 2020. The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance confirmed that the final tranche was settled in full on Thursday, May 9, 2025, following a pre-agreed repayment schedule.
Finance Minister Wale Edun, speaking at a press briefing in Abuja, stated:
“This marks a critical turning point in Nigeria’s economic journey. We have fulfilled all obligations to the IMF without requesting extensions or rollovers. It is a testament to this administration’s disciplined fiscal management.”
Since assuming office in May 2023, President Tinubu has championed a suite of fiscal and monetary reforms. Key among them are the removal of fuel subsidies, the convergence of multiple exchange rates into a unified market-driven rate, aggressive non-oil revenue mobilization, and the enactment of tax reform bills designed to widen the fiscal space.
These reforms, though controversial and painful in the short term, have drawn praise from international financial institutions, including the IMF and World Bank, for tackling Nigeria’s long-standing structural inefficiencies.
Nigeria’s exit from the IMF’s debtor register is expected to positively affect the country’s sovereign risk profile, encouraging both foreign direct investment (FDI) and improved terms for future external borrowing.
Speaking on Bloomberg TV, economic analyst Dr. Modupe Ariyo noted:
“This repayment is more than symbolic. It signals to global capital markets that Nigeria is back on the path of fiscal prudence. This could lead to favorable credit ratings and renewed investor interest in Nigerian bonds.”
Despite the successful debt clearance, Nigeria continues to face external challenges, including dwindling oil revenues, volatile exchange rates, and inflationary pressures. The IMF has projected that while Nigeria’s current account remains in surplus, the margin is narrowing—from 9.1% of GDP in 2024 to a projected 6.9% in 2025, and potentially 5.2% in 2026.
The Central Bank has retained its tight monetary policy, keeping the benchmark interest rate at 27.5% to curb inflation, which remains in the double digits.
Presidential spokesman O’tega Ogra, commenting on the development via X (formerly Twitter), said:
“President Tinubu believes in strategic partnerships, not dependency. Nigeria is open to engaging with the IMF and other global institutions based on mutual respect, sovereignty, and sustainable development goals—not bailouts.”
Nigeria’s removal from the IMF debtor list marks a pivotal moment in the nation’s economic trajectory, reflecting the impact of President Tinubu’s fiscal reforms. As the country continues to navigate economic challenges, this development underscores the importance of sustained policy implementation and international cooperation in achieving long-term financial stability.
As of May 10, 2025, Nigeria stands debt-free from the IMF, reinforcing a message of financial discipline, reform commitment, and renewed ambition on the global economic stage. While challenges remain, this moment underscores a new chapter in Nigeria’s fiscal policy direction—one that blends reformist zeal with cautious optimism
Like Our Story ? Donate to Support Us, Click Here
You want to share a story with us? Do you want to advertise with us? Do you need publicity/live coverage for product, service, or event? Contact us on WhatsApp +16477721660 or email Adebaconnector@gmail.com
