The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has rejected calls for the Federal Government to publish specific operational details regarding how it plans to deploy funds from its $5 billion financing facility with First Abu Dhabi Bank.

Speaking during a media briefing in Abuja on August 19, 2026, Oyedele stated that while the government maintains standard public reporting on overall state expenditure, the transaction with First Abu Dhabi Bank was being subjected to unnecessary scrutiny compared to traditional debt instruments.

"We will not publish how we are spending it. We will publish how we spend government money. There’s nothing special about that loan. Nobody has asked us whether we’re going to publish the money we took from the World Bank, whether we publish the one from Eurobond, whether we publish the one from Sukuk. Why is this one special?" Oyedele said.

The Federal Government recently executed an initial drawdown of approximately $1.5 billion from the $5 billion Total Return Swap facility, which received National Assembly approval on March 31, 2026. The funds are earmarked to support the 2026 budget, finance infrastructure, and refinance existing, higher-cost debt obligations.

Addressing concerns regarding due process, the minister emphasized that the transaction had been fully submitted to federal lawmakers, dismissing comparisons to off-market deals executed elsewhere.

"The loan was approved not only by FEC, it was also taken to the National Assembly because what some people are doing is they are comparing it with other countries where they did it under the table. What else can be more public than what you gave to the National Assembly?" he noted.

The transaction has drawn attention from international rating agencies and financial institutions. The International Monetary Fund (IMF) and Fitch Ratings previously expressed caution over derivative financing structures, pointing to potential risks regarding debt transparency, collateral obligations, and real-time valuation of sovereign liabilities.

Under the current agreement, the Federal Government is required to pledge securities valued at approximately 133 percent of the drawn amount as collateral.

Defending the structure, Oyedele explained that unlike fixed-rate Eurobonds, the flexible-rate facility allows the government to lower its overall debt servicing costs as market yields decline.

"This First Abu Dhabi Bank transaction is flexible rates. It means if rates go up, we pay more. If rates come down, we benefit more," Oyedele explained, adding that the overall cost remains lower than the government's existing portfolio.

He added that the government is drawing down the facility in phased tranches to avoid unnecessary interest costs on unutilized capital, and confirmed that the Ministry of Finance and the Debt Management Office (DMO) will publish an official Frequently Asked Questions (FAQ) document in the coming days to clarify technical details of the facility.

ID