The International Monetary Fund (IMF) has confirmed that Nigeria has completed repayment of US$3.4 billion in 2020 to ease the economic shocks caused by the pandemic on the 19th and the sharp drop in oil prices.
However, as part of the terms related to the loan, the country still expects the country to pay $30 million in special painting rights (SDR) fees annually.
SDR is an international reserve asset of the International Monetary Fund, and its value is based on currency baskets including US dollar, euro, Chinese yuan, Japanese yen and pound pound. The cost of borrowing from the IMF is charged and stated in the SDR.
According to data released by the International Monetary Fund (IMF) on Thursday, Nigeria made three payments in 2023: SDR 613.62 million, SDR SDR 1.22 billion in 2024, and SDR 613.62 million in 2025. In a statement, the IMF said in a statement: “Nigeria’s international payments had been fully paid $340 million as of April 30, 2025, and the international payments had received $340 million on April 3. The (International Monetary Fund) under the rapid financing instrument will help mitigate the impact of the 199 pandemic and the sharp decline in oil prices.”
Despite liquidating the loan, Nigeria is expected to continue to pay about $30 million in SDR fees each year. These fees apply to the difference in the country’s current SDR holdings of 3.164 billion SDR (US$4.3 billion), with a cumulative SDR allocation of 4.027 billion SDR (US$5.5 billion).
The IMF notes that once Nigeria’s SDR holdings equal its cumulative allocation, weekly fees will be updated every week.
