Nigeria has officially cleared its outstanding debt to the International Monetary Fund (IMF), marking a significant milestone in the country’s efforts to stabilize its economy and restructure its finances. This development has removed Nigeria from the IMF’s list of debtor nations, which includes 91 countries collectively owing over $117.7 billion as of May 6, 2025.
The news comes after a series of successful debt repayments by Nigeria, with the country steadily reducing its balance over the past year. According to data from analytics firm StatiSense, Nigeria’s debt stood at $1.61 billion in July 2023. By January 2024, the debt had decreased to $1.37 billion, and by July 2024, it had further dropped to $933 million. By January 2025, Nigeria’s remaining balance was $472 million, before the full settlement in May 2025.
The IMF credit outstanding reflects the amount of unpaid loans from member countries, including those under active and expired arrangements. Nigeria had previously accessed rapid financing through the IMF’s emergency lending mechanism during the COVID-19 pandemic, which contributed to its debt accumulation.
This latest achievement has been hailed as a reflection of Nigeria’s commitment to economic reform and fiscal discipline under the leadership of President Bola Tinubu. Senior Special Assistant to the President on Digital Engagement, Strategy, and New Media, O’tega Ogra, described the debt clearance as a key indicator of the government’s ongoing efforts to modernize the country’s financial management systems. He emphasized that while Nigeria has cleared its debt, the government remains open to future strategic engagements with the IMF and other international financial institutions.
“This is not the end of our relationship with the IMF,” Ogra stated. “Going forward, any engagement will be based on partnership and mutual benefit, with Nigeria taking a proactive approach to ensure long-term fiscal stability.”
The IMF has also acknowledged Nigeria’s economic reforms, particularly the removal of fuel subsidies and the cessation of fiscal deficit financing by the Central Bank of Nigeria. These measures, according to the IMF’s recent report, have helped stabilize the economy and improve resilience against external shocks, such as fluctuating oil prices and global inflation.
Despite progress, the IMF warned that Nigeria’s macroeconomic outlook remains uncertain due to global risks and the ongoing need for further structural reforms. However, the Fund commended the Nigerian government’s commitment to reducing inflation and promoting private sector-led growth as key components of the country’s future economic strategy.
The successful settlement of Nigeria’s IMF debt represents a significant achievement in the country’s broader reform agenda, as it seeks to balance fiscal responsibility with sustainable growth. While challenges remain, the latest development marks a crucial step forward in Nigeria’s efforts to reshape its economic future.