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By BUKAR Mohammed
In a significant step toward financial independence, Nigeria has successfully cleared its $1.61 billion debt to the International Monetary Fund (IMF), closing a financial chapter that had persisted across multiple administrations. This milestone, confirmed by a check on the IMF’s official website on May 7, 2025, removes Nigeria from the list of debtor nations.
The journey to this achievement was marked by careful planning and consistent payments. According to data from analytics firm StatiSense, Nigeria’s repayment journey began on July 28, 2023, with a balance of $1.61 billion. Over time, the debt gradually reduced: by January 5, 2024, it had dropped to $1.37 billion; by July 10, 2024, it stood at $933.03 million; and by January 8, 2025, it was further slashed to $472.06 million. The final payment was completed on May 6, 2025.
IMF Managing Director Kristalina Georgieva commended Nigeria’s financial discipline, describing the repayment as a “decisive milestone that reflects Nigeria’s commitment to sound economic management.” Her remarks underscore the international recognition of Nigeria’s efforts to rebuild its financial credibility.
However, this milestone must be clearly understood: Nigeria has cleared its IMF debt, but it is not entirely debt-free. While the IMF debt has been fully settled, Nigeria continues to owe other lenders, including those from Eurobonds and domestic borrowing. The IMF debt clearance is a symbolic victory, enhancing Nigeria’s global credit reputation, but it does not erase the nation’s broader financial obligations.
This development comes against the backdrop of Nigeria’s ambitious 2025 federal budget, which has raised questions about how the same country that recently borrowed heavily has now managed to clear its debt. Nigeria’s 2025 budget, christened the “Budget of Restoration,” is set at N54.99 trillion—almost double the 2024 budget of N28.7 trillion. This budget aims to fund critical sectors such as defense, infrastructure, health, and education, while projecting an ambitious revenue target of N41.91 trillion and a deficit of N13.08 trillion.
Critics argue that Nigeria’s reliance on optimistic assumptions, including an exchange rate of N1,400 per dollar and crude oil production of 2.06 million barrels per day, may be unrealistic. Yet, the government insists that the budget aligns with its Renewed Hope Agenda, focusing on security, economic stability, and growth.
The debt burden, inherited from past administrations, had long constrained Nigeria’s ability to execute economic plans without external pressure. Clearing this debt represents more than just a financial victory—it is a symbol of Nigeria’s determination to regain control over its economic destiny.
O’tega Ogra, Senior Special Assistant to President Bola Ahmed Tinubu on Digital Engagement, Strategy, and New Media, celebrated the achievement, describing it as a reflection of the Tinubu-Shettima administration’s disciplined financial management. “This is more than a payment—it is a reset,” Ogra stated in a social media post. “Nigeria is proving it can manage its economy with responsibility and vision.”
Despite clearing the debt, Nigeria remains an active member of the IMF and may continue to engage with the institution in the future. However, the nature of this relationship has shifted—from dependence to partnership.
A Gradual and Disciplined Repayment Plan
Nigeria’s path to settling the IMF debt was not sudden but carefully phased:
- July 28, 2023: Debt stood at $1.61 billion.
- January 5, 2024: Reduced to $1.37 billion.
- July 10, 2024: Reduced further to $933.03 million.
- January 8, 2025: Slashed to $472.06 million.
- May 6, 2025: Fully cleared.
This structured approach demonstrates a commitment to fiscal discipline, even in the face of economic challenges.
With this major burden lifted, Nigeria can now focus on strengthening its economic strategy and rebuilding its global financial reputation.
BUKAR Mohammed is a public and policy analyst from Kano.
