Nigeria clears IMF debt, exits debtor list in major economic milestone

In a significant stride toward economic self-reliance, Nigeria has fully repaid its outstanding credit obligations to the International Monetary Fund (IMF), officially exiting the Fund’s list of debtor nations.

This development was disclosed in the IMF’s latest report titled “Total IMF Credit Outstanding – Movement from May 01, 2025 to May 06, 2025,” published on Wednesday.

According to the report, Nigeria is no longer among the 91 developing and least developed countries with outstanding credit to the IMF—a group that collectively owed $117.8 billion as of May 6, 2025.

The total IMF Credit Outstanding across all countries stood at $117.79 billion by May 7, covering both unpaid and outstanding principal from current and expired arrangements.

A Steady Repayment Path

Nigeria’s exit from the IMF debtor list marks the culmination of a consistent debt repayment trajectory over the past two years.

Data from data intelligence firm StatiSense show that Nigeria’s debt to the IMF stood at $1.61 billion in July 2023. This gradually declined to $1.37 billion by January 2024, then to $933.03 million by July 2024, and further to $472.06 million by January 2025. As of early May 2025, the debt was fully repaid.

Presidency Hails “Strategic Reset”

Reacting to the milestone, the Senior Special Assistant to President Bola Tinubu on Digital Engagement, Strategy, and New Media, O’tega Ogra, described the development as a “strategic reset” in Nigeria’s fiscal management.

In a post on X (formerly Twitter), Ogra said the move reflects the administration’s commitment to fiscal discipline, economic reform, and long-term financial sustainability.

READ ALSO: IMF sounds alarm on surging global public debt

“As Nigeria closes the chapter on these legacy debt obligations, we are better placed to strengthen our fiscal credibility and show the world—and ourselves—that Nigeria is serious about managing our economy with responsibility and vision,” he wrote.

Ogra emphasized that Nigeria’s disengagement from the IMF’s debtor list does not equate to severing ties with the institution or other international partners. Rather, he noted that future engagements will be more strategic, collaborative, and partnership-driven, rather than dependence-based.

“This is definitely not a door slammed shut. Global partnerships, like the IMF, remain valuable allies, especially in a world defined by volatility and uncertainty,” he added.

He concluded with an optimistic message:

“Nigeria is rising with clarity, capacity, and credibility, and this is why you should take a #BetOnNigeria.”

Reforms and Global Recognition

The IMF has acknowledged Nigeria’s recent economic reforms—including the removal of fuel subsidies and unification of foreign exchange rates—as bold policy measures that have contributed to macroeconomic stabilization. The reforms are viewed as part of the Tinubu administration’s efforts to reduce dependency on external financing and promote domestic economic sustainability.

Economic analysts have praised the IMF debt clearance as a landmark in Nigeria’s reform journey, highlighting its potential to boost investor confidence, lower borrowing costs, and improve the country’s credit ratings.

Fitch Ratings recently upgraded Nigeria’s economic outlook to “Stable” from “Negative,” citing renewed confidence in the government’s reform agenda. The upgrade followed a series of fiscal and monetary policy adjustments that signaled a shift from populist spending to long-term economic restructuring.

Toward a More Resilient Economy

With this development, Nigeria signals a departure from cycles of international borrowing and enters a new phase of economic self-reliance. Analysts say the move could position the country more favorably in global financial markets and open the door for equity-based investment, rather than debt-heavy financing.

By exiting the IMF debtor list, Nigeria not only gains symbolic independence but also secures a stronger negotiating position in future multilateral engagements.