FG won’t publish details of $5bn Abu Dhabi loan — Oyedele

Federal Finance Minister Taiwo Oyedele has dismissed calls for the Nigerian government to disclose the intended use of funds from a $5 billion financing facility with First Abu Dhabi Bank. The minister argued that the transaction had already been subject to excessive scrutiny and that the facility was approved by the National Assembly.

The first tranche of $1.5 billion was drawn from the facility recently, despite concerns from the International Monetary Fund and Fitch Ratings regarding transparency and risks associated with such financing structures. Oyedele maintained that the government would publish information on how it spends public funds but questioned why the specific First Abu Dhabi Bank transaction was receiving special attention.

The minister emphasized that the facility was structured to help the government refinance more expensive debt and lower borrowing costs, as opposed to traditional fixed-rate borrowing. The arrangement involves pledging securities worth 133% of the drawn amount as collateral. The IMF and Fitch Ratings have expressed concerns about the financing structure, but Oyedele stated that the government would soon publish frequently asked questions to provide further clarification.