The International Monetary Fund has warned Nigeria to tread carefully in pursuing a proposed $5bn Total Return Swap financing arrangement with First Abu Dhabi Bank, describing such structures as opaque and potentially risky, despite the country’s improved access to international capital markets.
The IMF Resident Representative for Nigeria, Christian Ebeke, disclosed this on Tuesday during a virtual press briefing on the Fund’s 2026 Article IV Consultation Report on Nigeria.
Speaking on the proposed transaction, Ebeke said, “We say in the report, and our view is that the transaction and these types of structures carry risks. Usually, they are opaque. So, the terms are not always very transparent when we review these instruments across countries.”
His comments come weeks after the Senate approved the Federal Government’s request to raise up to $5bn through a Total Return Swap arrangement with a Middle Eastern bank, widely reported to be First Abu Dhabi Bank.
This post was originally published on this site.
