Nigeria has drawn the first tranche of its planned $5-billion financing arrangement with the United Arab Emirates-based First Abu Dhabi bank (FAB). This marks a key step in the strategy of President Bola Tinubu to secure cheaper foreign funding for budget implementation, infrastructure development, and debt refinancing amid elevated global borrowing costs.
The drawdown comes months after the National Assembly approved the Federal Government’s request to raise up to $5-billion through a structured Total Return Swap (TRS) arrangement with the Abu Dhabi lender, one of the largest banks in the UAE. The facility forms part of a broader external borrowing programme aimed at supporting the 2026 budget and easing pressure on public finances.
Easing pressure through structured funding
According to Bloomberg, the transaction is designed to provide Nigeria with access to dollar funding at lower costs than conventional international borrowing. This comes at a time when geopolitical tensions and
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