Nigeria Advances $5 Billion UAE Loan Amid IMF Concerns
The Nigerian government has moved forward with a $5 billion loan agreement with the United Arab Emirates, withdrawing an initial $1.5 billion. This financial arrangement, facilitated by First Abu Dhabi Bank, is intended to support the 2026 budget and finance critical infrastructure projects while restructuring existing debt liabilities.
The loan's pricing is set at 395 basis points above the secured overnight financing rate (SOFR) for the initial tranche, with subsequent tranches priced at SOFR plus 400 basis points. The IMF, represented by Christian Ebek, has expressed concerns regarding the opacity and complexity of the loan structure, warning that it could expose Nigeria to significant financial risks.
As of December 31, Nigeria's external debt stood at $51.9 billion. President Bola Ahmed Tinubu's administration has accumulated a total net loan of N93.5 trillion, marking a significant increase in the country's debt profile.
Plus234Feed summary based on reporting from Daily Trust. Read the original report below.
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