Nigeria Clarifies $5 Billion Abu Dhabi Swap Details

The Federal Government of Nigeria has defended its $5 billion Total Return Swap (TRS) facility with First Abu Dhabi Bank PJSC, stating that no oil revenues or strategic national assets were pledged as collateral. The Debt Management Office (DMO) issued a document on August 27, 2026, confirming that the facility is secured by naira-denominated Federal Government of Nigeria (FGN) securities, with collateral valued at 133.3% of the amount drawn.

The TRS, approved by the Federal Executive Council (FEC) and the National Assembly, allows Nigeria to obtain US dollar liquidity by pledging eligible FGN bonds. The first tranche is priced at SOFR plus 3.95%, with subsequent tranches at SOFR plus 4%.

The funds will be utilized for budget implementation, priority infrastructure, and refinancing of debt. The DMO emphasized that the additional collateral serves as a risk buffer and that the arrangement includes monthly margining and a five-business-day cure period if collateral levels fall below requirements.

Critics have raised concerns regarding the government's transparency about the facility.