By Moses Uzuakpundu
In a move widely hailed by analysts and international observers, the Federal Government of Nigeria has confirmed the full repayment of the $3.4 billion loan secured from the International Monetary Fund (IMF) during the height of the COVID-19 pandemic. This repayment marks a major fiscal milestone and positions Nigeria more favorably in global financial circles.
Nigeria Clears $3.4 Billion IMF Debt, What Next.
According to the Minister of Information and National Orientation, the repayment which began in earnest in 2023 was completed by May 2025. From an outstanding debt of $1.61 billion two years ago to a final balance of zero, the disciplined fiscal reforms that led to this achievement are commendable. As of today, Nigeria is no longer on the IMF’s list of 91 countries with pending credit obligations, making it a standout among developing economies.
However, while the payment itself is a commendable feat, attention has now shifted to a more pressing question: how exactly was the $3.4 billion spent?
As Human Rights lawyer Femi Falana, rightly called for, transparency and accountability are essential especially when such emergency funds were meant to cushion the impact of a global crisis.
If the whereabouts of this huge sum is to be unearth, the federal government should as a matter of transparency and accountability, consider implementing the following:
First, an independent forensic audit, preferably by a reputable international accounting firm—should be commissioned to trace the flow of funds and verify that expenditures matched approved COVID-19 response activities. This includes disbursements to health, social welfare, and economic stimulus programs.
Secondly, Civil society organizations and investigative journalists should invoke the FOI Act to compel ministries like Health, Finance, and Humanitarian Affairs to release expenditure records. Transparency portals can also be revived or upgraded to provide real-time access to COVID-19-related spending.
Lastly, the National Assembly should summon all key stakeholders involved in the management of the loan to account for their role and provide all the records of transactions made during the period under review. Simultaneously, the EFCC and ICPC should open investigations, particularly into reports of diversion, inflated contracts, or ghost beneficiaries of the palliatives meant for poor and ordinary Nigerians.
These measures, if carried out diligently and transparently, will not only lead back to those who coveted this funds. But also, to the ones that permitted it.
The successful repayment of the $3.4 billion IMF loan is a shining example of fiscal discipline and strategic debt management under the current administration. Yet, the government must now match this achievement with transparency. Accountability is not an accusation; it is a duty. By opening the books and supporting credible investigations, Nigeria can not only clear its debt but also clear the doubts surrounding its past.
