The Nigerian Federal Government rejects calls to publish details of its $5bn financing facility with First Abu Dhabi Bank. Finance Minister Taiwo Oyedele says the government will not release how the loan is spent, arguing that the focus should be on reporting how government money is used rather than disclosing specific loan-spending breakdowns.
Oyedele says the facility is part of a refinancing effort to replace Nigeria’s higher-cost debt. He notes that the loan was approved by the National Assembly and was presented to the Federal Executive Council. The government has already drawn $1.5bn, the first tranche, under the Total Return Swap structure.
Multiple outlets highlight that external institutions have raised concerns about transparency and sovereign debt risks. The IMF and Fitch Ratings have reportedly questioned derivative financing structures and the clarity of such arrangements. Oyedele responds that the deal has been assessed carefully and that the phased drawdown and flexible interest rate could help reduce borrowing costs if global rates fall. He also says the Ministry of Finance and the Debt Management Office will publish a set of frequently asked questions to further clarify the transaction.
