Nigeria's Federal Government Pays $22.5M in UAE Loan Fees

The Federal Government of Nigeria paid $22.5 million in charges on its $1.5 billion Total Return Swap financing from First Abu Dhabi Bank during the second quarter of 2026, according to data from the Debt Management Office (DMO). This payment, representing 1.5 percent of the drawn amount from a $5 billion financing program, was classified as “other charges,” with no principal or interest payments recorded.

The nature of these charges remains unclear, as the DMO did not specify whether they were for arrangement, commitment, transaction, or other fees. Nigeria had secured approval for this Total Return Swap program earlier in 2026 to raise external financing for its budget and manage debt obligations.

The government drew $1.5 billion in June, leaving $3.5 billion available. The DMO confirmed that this amount remained outstanding as of June 30, 2026.

The facility, which has a six-year tenor, requires collateral of naira-denominated government securities, with the first drawdown priced at SOFR plus 395 basis points.