Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, has rejected calls for the Federal Government to disclose how it plans to spend funds from its $5bn financing facility with First Abu Dhabi Bank.
Speaking at a media briefing in Abuja on Wednesday, Oyedele said the deal had faced unnecessary scrutiny. He said the National Assembly approved the facility and that it was designed to refinance more costly debt.
The government recently accessed about $1.5bn, the first tranche of the $5bn Total Return Swap facility, despite concerns from the International Monetary Fund and Fitch Ratings over its transparency and risks.
The $5bn facility was approved by the National Assembly on March 31, 2026. The first drawdown was expected to support the 2026 budget, infrastructure and refinancing of existing debt.
Asked if details of the transaction would be made public, Oyedele said information on government spending would be published but questioned why this facility was being singled out.
“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.
He added, “Nobody has asked us whether we’re going to publish the money we took from the World Bank, whether we publish the one from Eurobond, whether we publish the one from Sukuk. Why is this one special?”
Oyedele said the deal followed due process because it was presented to the National Assembly.
“The loan was approved not only by FEC, it was taken to National Assembly because what some people are doing is they comparing with other countries where they did it under the table.
“What else can be more public than what you gave to the National Assembly?” he said.
He said the funds were being accessed in phases to avoid extra costs.
“We’re assessing it in phases. You don’t want to take all the money at once because if you don’t spend it at once, you incur cost on the extra amount you’ve taken,” he said.
Oyedele said the facility has flexible rates, unlike Nigeria’s traditional fixed-rate borrowing, adding that its all-in rate is lower than the country’s existing portfolio.
“This First Abu Dhabi Bank transaction is flexible rates. It means if rates go up, we pay more. If rates come down, we benefit more.
“There’s nothing that says we must always do one thing. And the all-in rate for this transaction is lower than our existing portfolio,” he said.
He said the main aim was to refinance costly debt and cut borrowing expenses.
“So the objective is to use it to refinance expensive debt so you can save money,” he said.
Under the deal, the government must pledge securities worth about 133 per cent of the amount drawn as collateral.
The IMF and Fitch Ratings had raised concerns about the structure, including transparency and sovereign debt risks. The IMF warned that total return swaps can be difficult to track and value in real time, while Fitch said the arrangement could raise Nigeria’s debt risks and reduce transparency in public debt reporting.
Oyedele said frequently asked questions on the transaction would soon be published by the Ministry of Finance and the Debt Management Office.
“In the next few days, you will see on the website both the Ministry of Finance and DMO the frequently asked questions about this particular debt or bond, just so everybody can please themselves,” he said.
He added that there was “nothing special” about the loan despite the attention from critics and international media.
“I spend time on it because I think it’s important and the international media also, for some reason, have taken so much interest in it. But that is what it is.” Oyedele said.
