₦airaland Forum

Nigeria has serviced its debt to the International Monetary Fund with not less than $1.22 billion over nine months, data from the Debt Management Office’s external debt service reports has shown.

The payments were made as part of principal repayments for three consecutive quarters, from Q4 2023 to Q2 2024.

The breakdown of the payments shows that $401.73m was paid in Q4 2023, followed by $409.35m in Q1 2024, and $404.24m in Q2 2024, amounting to a total of $1.22bn.

As a result of these repayments, Nigeria’s debt to the IMF has decreased significantly, dropping from $3.26bn as of June 2023 to $1.16bn by June 2024.

This reflects a substantial reduction of 64.42 per cent within one year.

It was earlier reported that the current administration of President Bola Tinubu is expected to pay off a $3.4bn owed to the International Monetary Fund during his tenure.

In April 2020, the IMF disbursed a $3.4bn emergency financial assistance to Nigeria.


The loan was approved under the Rapid Financing Instrument by the Executive Board of the IMF on April 28 to address challenges arising from the economic impact of COVID-19 in the country.

The loaned amount was disbursed on April 30, 2020.

A statement by the IMF on the loan read, “The IMF approved $3.4bn in emergency financial assistance under the Rapid Financing Instrument to support the authorities’ efforts in addressing the severe economic impact of the COVID-19 shock and the sharp fall in oil prices.”

It was also reported earlier that Nigeria was expected to pay SDR373.81m ($497.17m), which included principal (SDR306.81m/$408.06m) and interest fee (SDR67m/$89.11m) on the loan.

Also, Nigeria was expected to pay a total of SDR1.32bn ($1.76bn) in 2024. This comprised a principal fee of SDR1.23bn ($1.64bn) and an interest fee of SDR94.76m ($126.03m).

In 2025, Nigeria will be expected to pay a total of SDR650.58m ($865.27). This comprised a principal fee of SDR613.63m ($816.13m) and an interest fee of SDR36.95m ($49.14m).

The country would be expected to pay a total of SDR25.56m ($33.99m) each in 2026 and 2027, which would be only an interest fee. This is the least amount during the repayment period.
In total, the administration of Tinubu would be expected to pay $3.19bn to the IMF, which further meant that the previous administration likely paid $320m on loan.

In its 2022 financial statements, the CBN referred to the loan.
It stated, “In 2020, the bank entered into a rapid financing instrument arrangement with the International Monetary Fund on behalf of the Federal Government of Nigeria. The loan is a 5-year tenor facility, repayable after a moratorium of two years and the interest rate is one per cent per annum.”

The CBN added, “Repayment of the IMF loans as well as charges is the responsibility of the bank.”

Buccalcavity2:
https://punchng.com/nigeria-repays-1-22bn-to-imf-in-nine-months-report

Lanruze:
Tinubu and his economic team should be humble enough to seek opinions from Obj and his economic team on debt forgiveness.

Multi-lateral agencies like the IMF look for impoverished developing countries to exploit.

Imagine the interest on principal and also sure that some of those funds we diverted , mismanaged or over inflated.

rinzaugustine:
Lol audio repayment. Na today? Monday now IMF will issue disclaimer warning them not to associate that with them as had happened many times in the past from so called dubai deal , indian deal , maersk deal etc all turned out to be lies and propaganda from Emilokan and his Gang of failures

Kujo:
What was the loan used for

Lanruze:
Tinubu and his economic team should be humble enough to seek opinions from Obj and his economic team on debt forgiveness.

Multi-lateral agencies like the IMF look for impoverished developing countries to exploit.

Imagine the interest on principal and also sure that some of those funds we diverted , mismanaged or over inflated.

helinues:
Another credit score boosting

We have been servicing out debts regularly while still embarking on new projects.

Nigerians are glad to have President Tinubu as Nigeria president

Kujo:
What was the loan used for

Apel147:
Obi still no go be President 😜

KEVIND:
Kudos to Tinubu but debt servicing is not the samea as debts repayment.
Make the report more comprehensive.

rinzaugustine:
Go and stop him na, make them bury you 4 feet for oshogbo central mosque

Lanruze:
Dear Helinus,

Trust this mail meets you well.

How much are you being paid for this social media campaign on some of the most annoying sponsored post sir.

Is it worth it to wake up at 5.48am (Nigerian Time and post just any gibberish that supports your paymaster).

At a point I thought you helinues was Seyi Tinubu because of the reactionary nature of your obviously sponsored posts, comments and likes.

Check out the interest on Principal that this loan has generated and also confirm how much loan the FG still wants to lend from IMF.

Take a chill pill sir, and not every thing needs unecessary overhyping.