A claim that Nigeria removed fuel subsidy and devalued its currency as part of the conditions for the International Monetary Fund (IMF) loan it obtained during the 2020 coronavirus pandemic has circulated on X (formerly Twitter).
An X user, @_moussa_ibrahim, posted the video with a caption thus: “The IMF got its $3.4B from Nigeria but what did Nigerians get?”
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He claimed that the loan, obtained during the COVID-19 pandemic, came with stringent conditions such as the removal of fuel subsidies, currency devaluation, and policies promoting greater foreign interference.
The audio transcribed below read:
“…Nigeria just finished paying back $3.4 billion to the IMF , The International Monetary Fund, Great Right, Nope let me break it down. We got the money during covid just like many other African and Global south countries. Then came the conditions, remove fuel subsidies, devalue the national currency, open the economy for more foreign control, what followed Hunger protests broken systems, Now they are clapping because the debt is paid off but what about the social debt, the schools unfunded, the food unaffordable, the IMF is not here to help us, its here to restructure us into obedience. Nigeria paid back the money but the real cost was our sovereignty…”
The video post has garnered more than 93,000 views, plus over 4,000 likes, and more than 2,700 reposts as of May 23, 2025.
Recall that on May 8, 2025, multiple international and local media reported that Nigeria had fully repaid the $3.4 billion emergency loan it received from the IMF in 2020 to manage the economic fallout from the COVID-19 pandemic.
CLAIMÂ
IMF COVID-19 loan was given to Nigeria with conditions like currency devaluation and fuel subsidy removal.
THE FINDINGSÂ
Findings by The FactCheckHub show that the claim is FALSE, as the COVID funding was issued under its Rapid Financing Instrument (RFI) which does not require IMF conditionality.
In April 2020, amid the economic downturn caused by the COVID-19 pandemic and a sharp decline in global oil prices, Nigeria secured $3.4 billion in emergency financing from the International Monetary Fund (IMF) under its Rapid Financing Instrument (RFI) .
The facility was designed to provide rapid financial assistance to countries facing urgent balance of payments needs without the requirement of a full-fledged economic programme.
Notably, the RFI does not impose traditional IMF conditionality or structural reform mandates. However, recipient countries were expected to outline their policy intentions to address underlying economic challenges.
The RFI is characterized by its swift disbursement and absence of ex-post conditionality. However, recipient countries were expected to cooperate with the IMF to address balance of payments difficulties, outline general economic policies they intend to pursue and commit to transparency and accountability in the use of funds.
In Nigeria’s case, the federal government pledged to enhance transparency by publishing procurement plans and conducting independent audits of COVID-19-related expenditures, implement fiscal measures to create space for priority spending, including health and social protection, and avoid central bank financing of the budget to maintain macroeconomic stability.
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While the RFI itself did not mandate specific policy changes, Nigeria undertook multiple significant economic reforms post-disbursement such as the fuel subsidy removal and the devaluation of the currency.
It’s important to note that these reforms were domestic policy decisions, Premium Times reported. The IMF clarified that while it provides policy advice, the implementation of such reforms is at the discretion of the Nigerian government.
THE VERDICT
The claim that the IMF COVID-19 loan was given to Nigeria with conditions like currency devaluation and fuel subsidy removal is FALSE; the Nigerian government implemented key economic reforms including the removal of fuel subsidy and currency devaluation at its discretion.
Seasoned fact-checker and researcher Fatimah Quadri has written numerous fact-checks, explainers, and media literacy pieces for The FactCheckHub in an effort to combat information disorder. She can be reached at sunmibola_q on X or fquadri@icirnigeria.org.
