The International Monetary Fund has cautioned Nigeria against its plan to secure up to five billion dollars through a derivatives-based financing arrangement with First Abu Dhabi Bank of the United Arab Emirates, warning that such transactions can be complex and lack transparency.
Speaking to journalists on Tuesday, the IMF Resident Representative in Nigeria, Christian Ebeke, said the proposed structure carries risks and urged the Federal Government to consider alternative funding options, including Eurobonds and concessional loans.
The warning follows the National Assembly’s approval on March 31 of President Bola Tinubu’s six billion dollar external borrowing request. The package includes a proposed structured total return swap financing programme of up to five billion dollars from First Abu Dhabi Bank.
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President Tinubu said the funds would support budget implementation, priority infrastructure projects and the refinancing of more expensive debts. He noted that Nigeria’s public debt stood at 110.3 billion dollars, or about 159.2 trillion naira, as of December 31, 2025.
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