IMF Warns Nigeria Over Risks of Proposed $5bn UAE Loan
The IMF has urged Nigeria to reconsider a planned $5 billion financing deal with First Abu Dhabi Bank. The fund says the derivative-based structure may hide hidden costs and transparency gaps. IMF resident representative Christian Ebeke told journalists these complex transactions often lack clear terms. He warned that opaque conditions make it hard to assess the true risks. The IMF recommended that Nigeria explore alternatives such as Eurobond issuances or concessional loans instead of derivative-backed financing. The warning comes as the National Assembly approved President Tinubu’s request for $6 billion in external borrowing, including the $5 billion structured swap, to fund the 2026 budget, infrastructure projects, and debt refinancing. Nigeria’s public debt stood at $110.3 billion at the end of December 2025.
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