FG’s guarantees and contingent liabilities hit N7.84 trillion as dollar swap accounts for 35%
The Federal Government’s outstanding guarantees and contingent liabilities stood at N7.84 trillion as of June 30, 2026, with collateral for a $1.5 billion Total Return Swap accounting for N2.74 trillion, or 34.99% of the total. The post FG’s guarantees and contingent liabilities hit N7.84 trillion as dollar swap accounts for 35% appeared first on Nairametrics .
As of June 30, 2026, the Federal Government's outstanding guarantees and contingent liabilities reached N7.84 trillion, according to the Debt Management Office's (DMO) report. This figure includes collateral for a $1.5 billion Total Return Swap, which accounts for N2.74 trillion, or 34.99% of the total. The power sector and financial institutions, particularly the Bank of Industry, also contribute significantly to the exposure.
The collateral for the Total Return Swap, arranged with First Abu Dhabi Bank, was the largest single item in the DMO's breakdown, representing nearly 35% of the total outstanding guarantees and contingent liabilities. The Federal Government had drawn down $1.5 billion under the $5 billion swap arrangement, utilizing Federal Government bonds due in May 2032 with a 16.9556% coupon as collateral for the drawn amount.
In addition to the swap collateral, power-sector obligations and Bank of Industry guarantees account for the majority of the Federal Government's reported exposure. Contingent liabilities from Power Company Obligations (PCOAs) for several independent power projects and guarantees for financial institutions like the Nigeria Mortgage Refinance Company add to the overall exposure.
The report highlights N29 billion utilized from the N440 billion guarantee allocated to the Nigeria Mortgage Refinance Company. As Nigeria continues to grapple with debt-service obligations, the latest guarantee figures underscore the pressure faced by the government. In the first half of 2026, Nigeria spent N5.28 trillion servicing domestic debt, with interest and rental payments accounting for N4.95 trillion.
The Federal Government also incurred N10.61 trillion in additional debt-service costs between June 2023 and December 2025, compared to N6.47 trillion spent on strategic infrastructure during the same period. Nairametrics further reported that the Federal Government borrowed N11.9 trillion between June 2023 and December 2025, attributing economic reforms to creating fiscal space and preventing higher borrowing.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
