Nigeria Has Drawn on a US$5 Billion Abu Dhabi Loan It Will Not Explain
Abuja has drawn the first US$1.5 billion of a US$5 billion swap facility. The pricing and the collateral terms remain unpublished. The post Nigeria Has Drawn on a US$5 Billion Abu Dhabi Loan It Will Not Explain appeared first on The Rio Times .
Nigeria has obtained a $5 billion loan from First Abu Dhabi Bank, but the government is refusing to disclose the loan's details. This total return swap arrangement involves pledging government bonds worth about 133% of the cash, which would amount to roughly $6.65 billion in naira bonds. The bank holds these bonds and assumes any gains or losses, while Nigeria pays a floating dollar interest rate.
If the value of the bonds declines, Nigeria must submit additional collateral within short notice. This unique financing mechanism has sparked concerns, with the IMF warning against it in June. Nigeria's finance minister, Taiwo Oyedele, has not released the term sheet, margin-call triggers, or the mechanics of the deal. A Nigerian think tank has called for the term sheet to be published, but the government has resisted.
Despite the lack of transparency, Nigeria's economy is showing some positive signs, with headline inflation dropping to 15.43% in July 2026 from 24.94% a year earlier.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
