IMF Warns Nigeria on $5bn Abu Dhabi Swap Deal Risks

The International Monetary Fund (IMF) has advised Nigeria to exercise caution in pursuing a proposed $5 billion total return swap arrangement with First Abu Dhabi Bank. Christian Ebek, the IMF's resident representative in Nigeria, disclosed this during a virtual press briefing on Tuesday, following the IMF's 2026 Article IV consultation report.

Ebek noted that the proposed transaction carries risks associated with its opaque structure, which may not always be transparent when reviewed across countries. The Nigerian Senate recently approved the federal government's request to raise this amount through the swap arrangement.

Ebek expressed concerns about the financial risks underlying the assets involved, particularly in the event of adverse exchange rate movements. He underscored the importance of monitoring the transaction closely.

The IMF's caution is part of a broader assessment acknowledging the economic reforms undertaken by the Nigerian government over the past three years, which have strengthened macroeconomic stability and improved the country's resilience against external shocks.