FG under fire over secrecy on $5bn Abu Dhabi financing deal
By Aboki Forex —
The Alliance for Economic Research and Ethics Ltd/GTE has criticised the Federal Government’s refusal to disclose details of the $5 billion Total Return Swap facility secured from First Abu Dhabi Bank, saying the deal carries major public-interest implications.
The criticism came in an independent review of the Tinubu administration’s “Nigeria’s Economic Reforms — By the Numbers” scorecard, presented by the Minister of Finance, Taiwo Oyedele. The review follows a policy briefing where Oyedele reportedly said the government would not publish detailed spending information on the facility because there was “nothing special” about the loan arrangement.
Transparency concerns
The Alliance said the government’s handling of communication around the financing arrangement was the weakest aspect of the reform presentation. The group argued that although the facility may be commercially structured, it involves a sovereign counterparty, public repayment obligations, collateral reportedly linked to government securities, and potential margin-call risks.
“The facility may be commercially structured, but it involves a sovereign counterparty, public collateral, public repayment obligations and potential margin-call risk. It therefore has a public-interest dimension even if the Government’s intended use is refinancing rather than a named capital project,” the report stated.
The think tank added that National Assembly approval does not remove the need for public disclosure. “A transaction can be properly authorized and still inadequately explained,” the report said. It called on the government to publish a redacted version of the facility’s term sheet, disclose pricing benchmarks reportedly linked to SOFR plus 3.95% to 4%, and provide periodic risk assessment reports.
Borrowing or revenue?
The review also examined the Federal Government’s claim of generating N20.4 trillion in incremental fiscal resources through ongoing reforms. According to the Alliance, approximately N11.85 trillion, about 58% of the reported figure, came from additional borrowing rather than internally generated revenue.
The remaining resources comprised N5.43 trillion in fuel subsidy savings and N3.12 trillion from other revenue sources. The group cautioned that borrowing should be classified as financing rather than revenue, warning that combining the two could create a misleading picture of government finances.
Economic pressure remains
The Alliance acknowledged improvements in some macroeconomic indicators but said many Nigerians still face severe economic pressures. The report highlighted additional fiscal burdens of N30.64 trillion, driven largely by N9.39 trillion in wage-related adjustments and N9.37 trillion in exchange-rate-related increases in external debt servicing costs.
Headline inflation moderated to 15.43% in July 2026 from 22.41% in May 2023, but food inflation remained elevated at 20.31%. According to the group, lower inflation does not necessarily mean lower prices but rather a slower pace of price increases.
The report cited IMF estimates indicating that poverty levels have reached 63% at the national poverty line, with about 27 million Nigerians facing severe food insecurity. It commended the Ministry of Finance for introducing a simplified reform scorecard and social intervention programmes such as the Nigerian Education Loan Fund (NELFUND).
The Alliance urged the government to strengthen accountability by publishing a monthly macroeconomic dashboard for citizens, incorporating derivative-based financing arrangements into public reporting frameworks, and expanding social protection programmes as a key economic stabilisation tool.
Facility details
The Federal Government has drawn down approximately $1.5 billion from the $5 billion Total Return Swap facility arranged with First Abu Dhabi Bank. The financing arrangement received National Assembly approval on March 31, 2026. The fund is expected to support the implementation of the 2026 budget, infrastructure development and the refinancing of existing debt obligations.
According to the government’s reform scorecard, exchange-rate depreciation increased external debt servicing costs by N9.37 trillion, while higher interest rates added N1.24 trillion to domestic debt servicing expenses. Combined debt-service costs of N10.61 trillion were estimated to be about 64% higher than spending on strategic infrastructure projects during the period.
For Nigerian consumers and businesses, the debate matters because these financing choices feed directly into debt service costs, inflation and the pressure on the naira. Transparency around such deals would help citizens track how public obligations are managed.