FG defends First Abu Dhabi bank deal, says loan will refinance expensive debt - Businessday NG

…FG to draw First Abu Dhabi Bank loan in phases to minimise costs – Oyedele

Taiwo Oyedele, minister of finance and coordinating minister of the economy, ha said that the Federal Government will draw down its loan from First Abu Dhabi Bank (FAB) in phases to minimise financing costs and ensure it does not incur charges on funds before they are needed.

Oyedele disclosed this on Wednesday in Abuja while responding to questions on the government’s borrowing plan and the First Abu Dhabi Bank transaction during the presentation of the Nigeria Reform Scorecard.

The Federal Government secured approval in March 2026 for a $5 billion Total Return Swap (TRS) financing programme with First Abu Dhabi Bank as part of a wider $6 billion external borrowing package.

The National Assembly approved the facility on March 31, with the funds to be disbursed in tranches for 2026 budget financing, priority infrastructure and refinancing of relatively expensive domestic and external debt.