Group challenges FG over secrecy around $5 billion Abu Dhabi financing deal

The Alliance for Economic Research and Ethics Ltd/GTE has criticized the Federal Government’s position on transparency regarding the $5 billion Total Return Swap (TRS) facility secured from First Abu Dhabi Bank, arguing that the arrangement warrants greater public disclosure.

The concerns were raised in an independent review of the Tinubu administration’s “Nigeria’s Economic Reforms — By the Numbers” scorecard, recently presented by the Minister of Finance, Taiwo Oyedele.

The review follows comments made during a policy briefing where Oyedele reportedly stated that the government would not publish detailed spending information on the facility because there was “nothing special” about the loan arrangement.

What they are saying

According to the Alliance, the government’s handling of communication around the financing arrangement represented the weakest aspect of the reform presentation.

The group argued that although the facility may be commercially structured, it carries significant public-interest implications because it involves a sovereign counterparty, public repayment obligations, collateral reportedly linked to government securities, and potential margin-call risks.

• “The facility may be commercially structured, but it involves a sovereign counterparty, public collateral, public repayment obligations and potential margin-call risk. It therefore has a public-interest dimension even if the Government’s intended use is refinancing rather than a named capital project,” the report stated.

The think tank further argued that National Assembly approval of the transaction does not eliminate the need for continued public disclosure.

• “A transaction can be properly authorized and still inadequately explained,” the report added.

The Alliance called on the government to publish a redacted version of the facility’s term sheet, disclose pricing benchmarks reportedly linked to SOFR plus 3.95%–4%, and provide periodic risk assessment reports.

Review of government reform scorecard

The analysis also examined the Federal Government’s claim of generating N20.4 trillion in incremental fiscal resources through ongoing reforms.

• According to the Alliance, approximately N11.85 trillion, representing about 58% of the reported figure, came from additional borrowing rather than internally generated revenue.
• The remaining resources comprised N5.43 trillion in fuel subsidy savings and N3.12 trillion from other revenue sources.

The group cautioned that borrowing should be classified as financing rather than revenue, warning that combining the two could create a misleading picture of government finances.

Concerns over economic hardship

While acknowledging improvements in some macroeconomic indicators, the Alliance said many Nigerians continue to face severe economic pressures.

• The report highlighted additional fiscal burdens of N30.64 trillion, driven largely by N9.39 trillion in wage-related adjustments and N9.37 trillion in exchange-rate-related increases in external debt servicing costs.
• It also noted that although headline inflation moderated to 15.43% in July 2026 from 22.41% in May 2023, food inflation remained elevated at 20.31%.
• According to the group, lower inflation does not necessarily mean lower prices but rather a slower pace of price increases.

The report further cited IMF estimates indicating that poverty levels have reached 63% at the national poverty line, with about 27 million Nigerians facing severe food insecurity.

Recommendations

The Alliance commended the Ministry of Finance for introducing a simplified reform scorecard and social intervention programmes such as the Nigerian Education Loan Fund (NELFUND).

However, it urged the government to strengthen accountability by publishing a monthly macroeconomic dashboard for citizens, incorporating derivative-based financing arrangements into public reporting frameworks, and expanding social protection programmes as a key economic stabilisation tool.

Get up to speed

The criticism comes after the Federal Government drew down approximately $1.5 billion from the $5 billion Total Return Swap facility arranged with First Abu Dhabi Bank.

The financing arrangement received National Assembly approval on March 31, 2026.

The fund is expected to support the implementation of the 2026 budget, infrastructure development and the refinancing of existing debt obligations.

What you should know

According to the government’s reform scorecard, exchange-rate depreciation increased external debt servicing costs by N9.37 trillion, while higher interest rates added N1.24 trillion to domestic debt servicing expenses.

Combined debt-service costs of N10.61 trillion were estimated to be about 64% higher than spending on strategic infrastructure projects during the period.