Nigeria has formally been taken off the International Monetary Fund’s (IMF) debtor list after paying off all of its outstanding debts.
Analysts argue that this important move, which is supported by the most recent IMF assessment, represents a sea change in the nation’s fiscal history and demonstrates the effectiveness of a strategic debt reduction plan implemented under President Bola Tinubu’s leadership.
By May 2025, Nigeria has completed a two-year repayment program and is no longer included among the 91 developing countries having outstanding credit to the IMF.
This achievement, reported in the IMF’s “Total IMF Credit Outstanding” document, has been hailed as a defining moment for Nigeria’s financial management, with the country now emerging debt-free from its previous obligations.
The journey towards clearing this debt began in earnest in 2023, when the nation’s IMF debt stood at $1.61 billion. Through disciplined fiscal reforms, the debt steadily declined, reaching $472 million by January 2025, before being fully repaid by May of the same year.
The final settlement not only removes the burden of legacy debt but also strengthens Nigeria’s position on the global economic stage.
In a statement, O’tega Ogra, Senior Special Assistant to the President on Digital Engagement and Strategy, described the clearance as a “strategic reset” for the nation’s financial policy. Ogra emphasized that this achievement is a reflection of the administration’s focus on 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.
