Nigeria secures $1.5 billion from UAE bank despite IMF and Fitch concerns over derivative financing
via Punch Nigeria4 min read
Nigeria has drawn down $1.5 billion from a $5 billion Total Return Swap facility with First Abu Dhabi Bank, the largest lender in the United Arab Emirates. This initial tranche, part of a deal approved by the National Assembly on March 31, 2026, is intended to support the 2026 budget, fund infrastructure projects, and refinance existing debt. The transaction requires Nigeria to pledge Federal Government securities worth approximately 133 percent of any amount drawn, meaning about $6.65 billion in naira-denominated bonds for the full $5 billion facility. In return, the Abu Dhabi-based bank provides dollar liquidity, with Nigeria paying a floating interest rate benchmark plus about four percentage points. This arrangement allows Nigeria to access immediate dollar funding without issuing new Eurobonds or traditional external loans, which have become more expensive. However, the International Monetary Fund and Fitch Ratings have raised concerns about the transparency and potential risks of such derivative financing structures. The IMF warned that these arrangements are often opaque and difficult to track, while Fitch stated that they could increase sovereign debt risks and create hidden liabilities, potentially impacting Nigeria's Issuer Default Rating. The deal comes as Nigeria faces high borrowing costs, revenue constraints, rising debt-servicing costs, and foreign exchange pressures, and is seen as a short-term relief, though economists caution about the long-term implications
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Six Nigerian citizens, detained in C么te d鈥橧voire since October 2025 on allegations of economic crimes, have been released following sustained diplomatic and consular efforts by the Nigerian government. The Ministry of Foreign Affairs announced that four individuals were freed on Monday, June 22, 2026, and the remaining two on Tuesday, June 23, 2026. The Nigerian Embassy in Abidjan engaged with Ivorian authorities, including the Ministry of Foreign Affairs and the Ministry of Justice, to secure their release. The Ministry commended Ambassador Nwabiola Ezenwa and the embassy staff for their professionalism and tireless efforts, and also thanked the Government of C么te d鈥橧voire for its cooperation, attributing the positive outcome to the cordial relations between the two countries. The Federal Government of Nigeria reaffirmed its commitment to protecting Nigerians abroad and urged citizens overseas to adhere to host country laws and maintain contact with diplomatic missions for assistance.
Must ReadNigerian sprint athlete Samuel Ogazi has announced his decision to turn professional, concluding his collegiate career at the University of Alabama. Ogazi, 20, is recognized as one of the greatest 400m runners in NCAA history and is the fourth-fastest man ever in the event. He chose to forgo his remaining NCAA eligibility after three seasons in the United States. His final collegiate season included winning the NCAA Outdoor Championship with a time of 43.38 seconds, breaking the NCAA record and placing him fourth on the all-time global list. Earlier, he secured the NCAA Indoor 400m title with an African indoor record of 44.57 seconds, making him the fourth-fastest indoor performer at the time. He also won the SEC indoor and outdoor 400m titles in 2026 and defended his NCAA outdoor crown from 2025, having also earned a silver medal in 2024. Throughout his collegiate career, Ogazi progressively lowered the Nigerian 400m record from 44.02 seconds to 43.38 seconds. He also set multiple University of Alabama records and departs as the fastest 400m runner in NCAA history. Athletics Station, a Nigerian track and field stakeholder, described this decision as a defining moment for Ogazi and the sport in Nigeria, expressing confidence that he will become a global force and medal contender with professional guidance. They urged the athletics community, sponsors, and fans to support him in this new chapter.
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