Concerns Over Nigeria's $5bn Abu Dhabi Financing Deal

The Alliance for Economic Research and Ethics has expressed concerns over the transparency and risk implications of the Nigerian federal government’s $5 billion Total Return Swap facility with First Abu Dhabi Bank. The organization, led by Dele Oye, a former President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, and ex-Chairman of the Organised Private Sector of Nigeria, urged the government to disclose the material terms of this financing arrangement.

This analysis followed the presentation of the economic reforms scorecard by Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy. The analysis titled “The $5 Billion Abu Dhabi Financing: A Scorecard of Transparency, Risk and the Road Ahead” highlighted that the facility involves public institutions, collateral, and repayment obligations, necessitating public scrutiny.

It also pointed out that borrowing accounted for approximately 58% of the reported N20.4 trillion in incremental federal government resources, emphasizing that this should not be misrepresented as “free cash.”.