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Nigeria has fully repaid its $3.4bn loan received under the Rapid Financial Instrument (RFI) from the IMF, marking its exit from the list of indebted nations to the lender. The repayment of the loan which was received in April 2020, has affirmed Nigeria’s progress in meeting its external debt obligations. Despite the full principal payment, Nigeria will continue to pay an annual amount of approximately $30mn in Special Drawing Rights (SDR) charges till 2029. The IMF had issued similar loans to 85 countries during 2020-21. Nigeria utilized this loan to tackle the collapse in oil prices, besides also tackling its economic slowdown during the time. For instance, in 2Q2020, its GDP dropped by 6.1% YoY, marking its worst economic performance in a decade. Nigeria is significantly dependent on oil, which accounts for 80% of its exports and 50% of government revenue.
Nigeria’s dollar bonds were trading stable with its 7.375% 2033s at 81.6, yielding 10.8%.
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