Toba Owojaiye reporting
Abuja, Nigeria
Nigeria has achieved a significant financial milestone by fully repaying its legacy debt obligations to the International Monetary Fund (IMF), amounting to $1.61 billion (approximately ₦2.59 trillion as of May 7, 2025) .
This accomplishment concludes a decades-long financial burden that had weighed heavily on Africa’s most populous nation.
Truth Live News gathered the legacy loan which refers to obligations accumulated over past administrations, often including arrears owed to international creditors, bilateral partners, and domestic contractors. These debts have long been seen as a drag on the nation’s economic performance and investor confidence .
IMF Managing Director Kristalina Georgieva praised Nigeria’s leadership, stating, “This clearance demonstrates Nigeria’s decisive fiscal management and its commitment to long-term structural reforms. It marks a critical turning point for the country’s economic trajectory and global credit standing” .
The debt clearance is expected to ease access to foreign funding, reduce borrowing costs, and improve investor perception, especially as Nigeria continues to pursue economic diversification and monetary stability under President Bola Tinubu’s administration . Experts suggest that this development could positively impact Nigeria’s sovereign credit rating in the near future.
This achievement positions Nigeria favorably for renewed negotiations on concessional funding and signals a new chapter in its economic development.