Nigeria clears legacy debt obligations owed IMF, other creditors

The International Monetary Fund (IMF) has confirmed that Nigeria has fully settled all outstanding legacy debt obligations, marking the end of a financial era that had burdened the country for decades.

In an official statement released by the IMF, the global financial institution described the development as a “milestone” and a major boost to Nigeria’s fiscal credibility and international credit profile.

Legacy debts typically refer to arrears accumulated by successive administrations, including unpaid obligations to international financial institutions, bilateral creditors, 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 development 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 say the debt clearance also opens the door for renewed negotiations on concessional funding and could positively impact Nigeria’s sovereign credit rating in the near future.