NIGERIA REPAYD $1.22 BILLION IMF LOAN IN NINE MONTHS: WHAT’S NEXT?
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Nigeria has made significant progress in repaying its debt to the International Monetary Fund (IMF), with a total of $1.22 billion paid over nine months. But what does this mean for the country’s economy, and what’s next in the repayment process?
According to data from the Debt Management Office, the payments were made as part of principal repayments for three consecutive quarters, from Q4 2023 to Q2 2024. The breakdown of the payments shows that $401.73 million was paid in Q4 2023, followed by $409.35 million in Q1 2024, and $404.24 million in Q2 2024.
As a result of these repayments, Nigeria’s debt to the IMF has decreased significantly, dropping from $3.26 billion as of June 2023 to $1.16 billion by June 2024. This reflects a substantial reduction of 64.42 percent within one year.
But some critics are questioning the source of the funds used to repay the loan. Was the loan repaid using new loans or was it from the country’s revenue? What are the implications of this repayment on Nigeria’s economy?
It’s also worth noting that Nigeria still owes the IMF a significant amount. The current administration of President Bola Tinubu is expected to pay off a $3.4 billion owed to the IMF during his tenure. In 2025, Nigeria will be expected to pay a total of $865.27 million, which includes a principal fee of $816.13 million and an interest fee of $49.14 million.
What do you think about Nigeria’s repayment of the IMF loan? Do you think the country is on the right track in managing its debt?
