NIGERIA’s exit from the International Monetary Fund (IMF) debtors is expected to serve as a strong signal to foreign investors’ confidence and strengthened future engagements with foreign partners, a financial expert, Ayokunle Olubunmi, has said.

The IMF confirmed the exit in a report titled: ‘Total IMF Credit Outstanding – Movement from May 01, 2025, to May 06, 2025,’ published on its website on Wednesday, May 7.

A cursory look at the list revealed Nigeria was not listed among the 91 developing and least developed countries with outstanding credit obligations to the IMF, which collectively owed $117.8 billion as of May 6, 2025.

“This data is subject to regular formal reviews and may be subject to change or adjustment due to pending transactions which may not have yet been confirmed,” the IMF noted.

Giving an insight into what the repayment obligation would mean for Nigeria’s economy, the head of Financial Institutions Rating at Agusto & Co, Ayokunle Olubunmi, said the action could attract increased investor interest and potentially lead to more foreign investment.

“Nigeria fully paying down its overnight loan is a strong signal to foreign investors. This repayment demonstrates Nigeria’s ability to meet its financial obligations, even amidst global economic challenges. It assures investors that they can expect to receive their funds back when investments mature,” Olubunmi said.

He explained further that the repayment could lead to a “crowding in” effect, where more investors become interested in Nigeria, stressing that it would complement positive rating outlooks for the country.

He, however, expressed that while the repayment is a positive sign, it is not a complete solution.

He said Nigeria should address its fundamental economic challenges and improve its investment climate to attract significant foreign investment.

“Even with positive developments, Nigeria needs to effectively communicate its progress and investment opportunities to foreign investors,” Olubunmi said.

He added that effective communication and “selling the story” of Nigeria’s progress are crucial for attracting substantial foreign investment.

Meanwhile, the Senior Special Assistant to the President on Digital Engagement, Strategy, and New Media, O’tega Ogra, noted that Nigeria’s exit from the IMF debtor list did not mean the country would no longer engage with the Fund or other international lenders.

He believes rather that future engagements would be on a more strategic and partnership-oriented basis.

“This is not a door slammed shut. Global partnerships, like the IMF, remain valuable allies, especially in a world defined by volatility and uncertainty. The difference now is that any future engagement will be proactive, not reactive, and based on partnership, not dependence,” Ogra said.

The ICIR can report that in its recent assessment, the Fitch Ratings agency upgraded Nigeria’s outlook to Stable from Negative.