The Federal Government of Nigeria has rejected calls to disclose specific details of how it plans to spend funds secured through its $5 billion financing facility with First Abu Dhabi Bank.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this during a media briefing in Abuja.
Oyedele said the facility had received the required approval from the National Assembly, dismissing claims that the transaction was conducted secretly.
Nigeria recently accessed about $1.5 billion as the first tranche of the $5 billion Total Return Swap facility.
The financing is expected to support the 2026 budget, infrastructure development and the refinancing of existing debt.
Addressing concerns over transparency, Oyedele said the government would account for public funds through its general spending reports.
He, however, ruled out publishing a separate breakdown of how the Abu Dhabi facility would be spent.
“We will not publish how we are spending it. We will publish how we spend government money. There’s nothing special about that loan,” he said.
The minister questioned why the facility was receiving particular attention compared with loans obtained through institutions such as the World Bank, as well as Eurobond and Sukuk markets.
Oyedele explained that the government was accessing the funds gradually to avoid paying costs on money that had not yet been deployed.
He also noted that the facility differs from conventional fixed-rate borrowing because its interest rate is flexible.
According to him, Nigeria could benefit if global interest rates decline, although borrowing costs could increase if rates rise.
Oyedele maintained that the primary objective of the facility was to refinance more expensive existing debts and reduce the government’s overall borrowing costs.
The arrangement has, however, raised concerns from the International Monetary Fund and Fitch Ratings over transparency and possible sovereign debt risks.
Oyedele said the Ministry of Finance and the Debt Management Office would soon release a Frequently Asked Questions document on the facility.
He said the document would provide further clarification on the transaction and address concerns surrounding the $5 billion financing arrangement.
