Nigeria Clears IMF Debt: 10 African Countries Still Owe Billions

Nigeria has been officially removed from the list of African countries in debt to the International Monetary Fund (IMF) after fully repaying its COVID-19-era loans. In contrast, ten other African countries still owe significant amounts of debt to the IMF.

Who Still Owes the IMF Big

Here are the 10 African nations that still have substantial IMF debts, along with approximate amounts:

Zambia and Uganda, in particular, are under pressure, negotiating extensions and new loans, and often turning to the IMF for support to stabilize their economies.

What does Nigeria’s exit mean?

Nigeria’s removal from the IMF’s list of indebted countries is seen as a significant achievement in terms of its financial reputation and macroeconomic stability. Meeting its COVID-19 obligations has relieved a layer of external pressure, boosting investor confidence and strengthening the perception of fiscal discipline.

However, this does not mean that Nigeria is debt-free. It still owes other external debts and must ensure the coherence of its fiscal and economic policies to avoid returning to the IMF’s list of indebted countries. Sustained reforms and prudent management will be essential.

Overview and Implications for Africa

For the 10 countries that still owe large amounts, the situation highlights recurring challenges: dependence on external debt, exposure to global economic shocks (fluctuations in commodity prices, inflation, exchange rate instability), and the difficulty of implementing reforms (e.g., elimination of subsidies, budget cuts) without provoking a social backlash.

Furthermore, this moment may serve as a stimulus for these nations to seek alternative financing, improve revenue generation, strengthen governance and transparency, and reduce excessive dependence on IMF credit. Nigeria’s recent liquidation sets a benchmark, but the path forward remains arduous for countries still facing large obligations.