The Federal Government has said it will not publish specific details of how funds drawn from its $5 billion financing facility with First Abu Dhabi Bank will be spent, according to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele. Oyedele said the transaction had received unnecessary attention, arguing that the facility was approved by the National Assembly and structured primarily to help Nigeria refinance more expensive debt. The government has already drawn about $1.5 billion as the first tranche of the facility, which was approved by lawmakers in March 2026. The financing arrangement is expected to support the 2026 budget, infrastructure projects and the refinancing of existing debt obligations. Oyedele defended the transaction, saying it was assessed carefully and that the funds were being accessed in phases to avoid additional costs associated with borrowing money that may not be immediately required. He also explained that the facility operates on flexible interest rates, meaning Nigeria could benefit if rates fall but would face higher costs if rates rise. According to the minister, the main objective is to replace more expensive debt and reduce the government’s overall borrowing costs. The arrangement has attracted scrutiny from organisations including the International Monetary Fund and Fitch Ratings, which have raised concerns about transparency, sovereign debt risks and the structure of the financing. The Federal Government, however, maintains that the transaction followed due process and was presented to the National Assembly for approval. Oyedele said the Ministry of Finance and the Debt Management Office would publish frequently asked questions to provide additional clarification about the facility. The development has renewed debate over government borrowing, transparency and public access to information about major financial transactions.
