Nigeria Absent in Top IMF Debtors in Africa
By AWC Economy & Finance Desk
Nigeria no longer appears on the list of African countries with the highest outstanding loans from the International Monetary Fund (IMF) — a development that underscores a major shift in the country’s external borrowing profile and fiscal management, particularly under President Bola Ahmed Tinubu’s economic reform agenda.
Africa’s IMF Debt Landscape (2025)
According to recent IMF credit outstanding data, several African nations continue to report significant debt exposure to the Fund:
- Egypt tops the continent with an outstanding IMF debt of around $7.4 billion–$8.6 billion, the largest in Africa.
- Other countries with substantial IMF obligations include Kenya ($3.0 billion), Angola ($2.7–2.9 billion), Côte d’Ivoire ($2.6–3.1 billion) and Ghana ($2.4–2.7 billion).
- Several additional countries such as Democratic Republic of Congo, Ethiopia, Cameroon, Tanzania and Senegal also feature on the list with debt totals exceeding $900 million–$2 billion.
This ranking highlights the ongoing reliance of many African economies on IMF financing to support balance-of-payments needs, macroeconomic stabilisation, and structural reforms, especially amid global economic volatility.
Nigeria’s Exit from the IMF Top Debtors List
In contrast, Nigeria is notably absent from these rankings. The IMF’s “Total Credit Outstanding” report for May 1–6, 2025, showed that Nigeria was removed from the list of countries with outstanding IMF credit obligations after fully settling its principal debt to the Fund.
This repayment followed the settlement of a $3.4 billion emergency loan Nigeria accessed under the IMF’s Rapid Financing Instrument (RFI) during the COVID-19 pandemic — a facility designed to help countries weather economic shocks. As of April 30, 2025, the IMF confirmed that Nigeria had completely repaid this emergency funding.
Despite clearing its principal, Nigeria remains obligated to make annual Special Drawing Rights (SDR) charge payments, estimated at around $30 million per year, which are standard administrative charges attached to IMF programmes.
Why Nigeria’s Position Matters
Nigeria’s removal from the IMF top debtors list marks a significant milestone in its economic repositioning:
- Enhanced macroeconomic credibility: Analysts suggest that clearing IMF obligations helps boost investor confidence and external perceptions of fiscal discipline.
- Policy autonomy: Being free of IMF credit outstanding removes a layer of external conditionality often associated with Fund support — a factor many economists argue can constrain domestic policy space.
- Reform validation: The move is seen as validation of ongoing tax reforms, foreign exchange management and budget discipline under the Tinubu administration, which has emphasised revenue mobilisation and structural adjustment.
Context Within Broader External Debt
While Nigeria has exited IMF indebtedness, its overall external debt profile remains significant. Data from mid-2025 show Nigeria’s external debt stock near $47 billion, with other major lenders including the World Bank (nearly $18.5 billion) and bilateral creditors such as China’s Exim Bank.
This broader context means that, although the IMF liability has been cleared, Nigeria’s public debt management challenges and obligations to other multilateral and commercial creditors remain front-burner issues for fiscal sustainability.
Comparative Outlook in Africa
Nigeria’s absence from the IMF debt list contrasts sharply with many African peers still carrying multibillion-dollar obligations. For example:
- Egypt’s ongoing loan programme with the IMF is poised for further disbursements under new staff-level agreements.
- Ghana continues to negotiate debt restructuring amidst a multi-year IMF program, reflecting persistent financing pressures.
Conclusion: A Fiscal Reset Moment
Nigeria’s exit from the IMF’s top debt roster in 2025 is more than a statistical footnote — it is a reflection of concerted policy effort, disciplined repayment strategy and a shift toward strengthening sovereign financial posture. As external financing needs persist across the continent, Nigeria’s experience may serve as a template for balancing responsible borrowing with fiscal independence.
With this achievement, Nigeria has not only reduced one dimension of external vulnerability but also repositioned itself for greater participation in global capital markets — a notable achievement under the Renewed Hope economic framework championed by the Tinubu government.
