First Abu Dhabi Bank Explores Syndication for Nigeria's $5B Swap

First Abu Dhabi Bank PJSC (FAB), the largest lender in the United Arab Emirates, is exploring the possibility of sharing part of its exposure to Nigeria's $5 billion total-return swap through a syndication arrangement with other banks. This consideration was reported on October 1, 2026, by Bloomberg, citing confidential sources.

FAB intends to remain Nigeria's counterparty in the transaction while potentially allowing other banks to take portions of its exposure, which could also generate additional fees for FAB. The total-return swap, initiated in March 2026, was part of Nigeria's strategy to diversify its financing sources and reduce reliance on more expensive borrowing methods.

The National Assembly approved this transaction, which is seen as a means to access foreign-currency financing at a lower cost. However, the structure has faced scrutiny regarding transparency and implications for Nigeria's debt management, especially as the country's external debt rose significantly during President Bola Tinubu's administration.