Nigeria has officially cleared its outstanding debt to the International Monetary Fund (IMF), removing the country from the Fund’s list of debtor nations.
This milestone, confirmed in the IMF’s latest “Total IMF Credit Outstanding” report, marks a significant shift in Nigeria’s fiscal trajectory and is seen as a major achievement of President Bola Tinubu’s debt reduction strategy.
As of May 2025, Nigeria is no longer among the 91 developing countries with outstanding IMF credit, completing a two-year repayment plan that began in 2023 when the debt stood at $1.61 billion. By January 2025, the amount had reduced to $472 million and was fully paid off by May.
The successful repayment has been praised as a defining moment in Nigeria’s financial management, eliminating legacy debt and enhancing the country’s standing in the global economic arena.
O’tega Ogra, Senior Special Assistant to the President on Digital Engagement and Strategy, called the development a “strategic reset” for national financial policy, highlighting the administration’s commitment to fiscal discipline, long-term sustainability, and economic resilience.
“This milestone signals a new chapter for Nigeria, one marked by clarity, capacity, and fiscal responsibility,” Ogra said. “We are no longer defined by aid dependence but by our capacity to stand tall and manage our financial future on our terms.”
While Nigeria’s exit from the IMF’s debtor list is a symbolic moment of progress, Ogra made it clear that the country would continue to engage with the IMF and other international partners, but now on a more proactive, strategic basis. “Global partnerships remain essential, but we approach them from a place of strength, not dependency,” he added.
This achievement comes on the heels of Nigeria’s rather controversial economic reforms, including the removal of fuel subsidies and the unification of its foreign exchange market. These changes have been credited with stabilizing the macroeconomic environment and positioning Nigeria for sustainable growth.
Analysts suggest that Nigeria’s successful debt repayment could have far-reaching consequences, including an improved credit rating, reduced borrowing costs, and a boost in investor confidence.