Nigeria’s debt to the International Monetary Fund (IMF) has decreased significantly, dropping to 306 million in the first quarter of 2025, down from 3.2 billion in the second quarter of 2023

In a remarkable achievement, Nigeria’s debt to the International Monetary Fund (IMF) has decreased significantly, dropping to 306 million in the first quarter of 2025, down from 3.2 billion in the second quarter of 2023. This impressive reduction is a testament to the country’s commitment to sound financial governance and debt management.

According to the Debt Management Office (DMO), Nigeria has made substantial progress in reducing its IMF debt over the past two years. As of March 31, 2023, the country’s outstanding balance with the IMF stood at SDR 2.45 billion, but through consistent quarterly repayments, this amount has been gradually reduced to SDR 306.81 million as of March 31, 2025.

This represents an astonishing 87.5% reduction in outstanding debt over a two-year period. At this rate, Nigeria is on track to eliminate its IMF debt entirely by mid-2025, a feat that would be a significant milestone in the country’s financial history.

The data released by the DMO shows a steady decline in Nigeria’s IMF debt over the past year:

Q2 2023: $3.26 billion
Q4 2024: $800.23 million
Q1 2025: $306 million
This achievement is a major credit to the President Bola Tinubu administration, which has prioritized debt management and fiscal discipline since taking office. The administration’s efforts to reduce the country’s debt burden and promote economic stability have yielded impressive results, with the IMF debt reduction being a notable example.

The reduction in Nigeria’s IMF debt is expected to have positive implications for the economy. With a lower debt burden, the government will have more flexibility to implement policies that promote economic growth and development. Additionally, the country’s credit rating is likely to improve, making it more attractive to foreign investors and reducing the cost of borrowing.

As Nigeria continues to make progress in reducing its IMF debt, the government is expected to focus on other areas of debt management, including reducing its domestic debt and promoting economic diversification. With the country’s economy showing signs of recovery, the reduction in IMF debt is a positive development that is likely to have far-reaching implications for Nigeria’s economic future.