DMO: FG Didn’t Pledge Oil Revenues, Strategic Assets as Collateral for $5bn Abu Dhabi Bank’s Facility
Ndubuisi Francis in Abuja The Debt Management Office (DMO) has explained that the federal government did not pledge oil revenues or strategic assets, such as ports or airports, as collateral
The Debt Management Office (DMO) has clarified that the Nigerian government did not pledge oil revenues or strategic assets like ports or airports as collateral for the $5 billion Total Return Swap (TRS) facility between the Federal Government of Nigeria (FGN) and First Abu Dhabi Bank PJSC (FAB). Instead, Nigeria pledged naira-denominated Federal Government of Nigeria (FGN) Bonds, which are domestic securities that can be managed through the country's fiscal and monetary policy tools.
The $5 billion TRS is a six-year financial arrangement where Nigeria pledges naira-denominated government bonds as collateral to secure immediate US dollar liquidity, rather than a traditional loan.
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