Nigeria's finance minister rejects calls to publish details of $5bn Abu Dhabi loan spending
Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, has stated that the Federal Government will not publish specific details on how it plans to spend funds from its $5bn financing facility with First Abu Dhabi Bank. Oyedele defended the transaction, noting it received approval from the National Assembly and is structured to refinance more expensive debt. He questioned why this particular facility was receiving special scrutiny compared to other government borrowings from entities like the World Bank or Eurobonds. The Federal Government recently drew approximately $1.5bn, the first tranche of the $5bn Total Return Swap facility, despite concerns from the International Monetary Fund and Fitch Ratings regarding transparency and associated risks. Oyedele dismissed suggestions of a lack of due process, emphasizing the loan's approval by the National Assembly and the Federal Executive Council. He explained that the funds are being accessed in phases to avoid unnecessary costs and highlighted the flexible interest rate of the First Abu Dhabi Bank facility, which differs from traditional fixed-rate borrowing and aims to reduce borrowing costs. The government plans to publish frequently asked questions about the transaction on the Ministry of Finance and Debt Management Office websites for further clarification.
