The International Monetary Fund (IMF) has cautioned the administration of President Bola Ahmed Tinubu against proceeding with a proposed $5 billion borrowing arrangement with the First Abu Dhabi Bank of the United Arab Emirates under a Total Return Swap financing structure.
The warning was issued on Tuesday by the IMF Resident Representative for Nigeria, Christian Ebeke, during the presentation of the Fund’s 2026 Article IV Consultation Report on Nigeria.
Recall that the Senate had in April approved the Total Return Swap agreement, placing the country among African nations such as Senegal and Angola that have adopted similar borrowing arrangements. The loan, according to the government, is intended to address budget deficits and support ongoing debt financing obligations.
According to the IMF, this financing setup is opaque and could expose Nigeria to significant financial risks.
Ebeke explained that such structures often lack transparency and may leave participating countries vulnerable to losses if
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