The International Monetary Fund has raised fresh concerns over Nigeria’s plan to secure up to $5 billion through a derivatives-based financing arrangement with First Abu Dhabi Bank.
According to The Sun Nigeria, the IMF’s resident representative in Nigeria, Christian Ebeke, warned that such funding structures can be complex, opaque and difficult to fully assess.
Ebeke noted that similar deals in other countries have often raised transparency concerns, making it harder to determine the true obligations and risks involved. He advised Nigeria to consider more conventional borrowing options, such as Eurobonds or concessional loans, which generally offer clearer terms.
The federal government has said the proposed funding will support budget implementation, infrastructure projects and debt refinancing.
The IMF’s warning comes as Nigeria’s public debt stock stands at about $110.3 billion, adding to concerns about long-term debt sustainability.
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