Nigeria has drawn the first $1.5 billion from a $5 billion derivatives financing arrangement with First Abu Dhabi Bank under a borrowing plan approved by the National Assembly in March.
According to Bloomberg, the Federal Government received the funds within the past two weeks through a structured total return swap transaction with the United Arab Emirates’ largest lender. The borrowing forms part of President Bola Tinubu’s approved plan to secure up to $6 billion in external financing.
The President had informed lawmakers that the borrowing would add to Nigeria’s public debt, which stood at $110.3 billion, or about N159.2 trillion, at the end of December 2025.
The drawdown comes despite concerns from Fitch Ratings and the International Monetary Fund, which warned that derivative-based financing arrangements can reduce transparency, complicate debt reporting, and expose countries to additional foreign exchange risks.
Also Read: Rescuers Pull 6 Survivors from Collapsed Lagos Building
Leave feedback about this
You must be logged in to post a comment.