Rising reserves cannot fully protect Nigeria from UAE loan risks, report warns

A new report has cautioned that Nigeria's growing foreign reserves are not enough to shield the country from the financial risks tied to its loans from the United Arab Emirates.

The report notes that the reserves have helped strengthen the economy, provide foreign exchange support, and potentially refinance more expensive debts.

However, analysts say the exposure to UAE-linked borrowing still leaves Nigeria vulnerable to currency shifts and repayment pressures.

The warning comes as the Central Bank of Nigeria continues to build reserves to defend the naira and attract investor confidence.