IMF Warns Nigeria on $5 Billion UAE Swap Deal

The International Monetary Fund (IMF) warned Nigeria on Tuesday about the significant risks surrounding its plan to borrow up to $5 billion through a derivatives swap agreement with United Arab Emirates lender First Abu Dhabi Bank.

Christian Ebeke, the IMF mission chief in Nigeria, stated that these structured transactions are often complex and opaque, with terms that lack transparency.

The IMF urged Nigerian officials to abandon the deal and instead issue Eurobonds or secure concessional financing to cover its deficits.

Nigeria intends to use the proceeds from this total return swap to refinance expensive debt and fund infrastructure projects.

In its latest economic review, the Fund praised President Bola Tinubu’s sweeping currency and fuel reforms, which have stabilised the economy and pushed gross reserves to a 17-year high of $50 billion.

IMF (News Central TV) — The IMF warns Nigeria about a $5 billion UAE swap deal. Credit: Reuters

However, the IMF cautioned that these macro gains have failed to reach everyday households, as the reforms worsen social strain, push poverty levels to 63 per cent, and leave millions facing food insecurity.

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Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.