IMF advises government against $5 billion UAE swap deal

By Emma Ujah, Abuja Bureau Chief

The International Monetary Fund (IMF) has advised the Nigerian federal government to reject a proposed $5 billion Total Return Swap (TRS) External Financing Programme with First Abu Dhabi Bank.

During the Nigeria 2026 Article IV briefing on Tuesday afternoon, the Fund’s Resident Representative in Nigeria, Mr. Christian Ebeke, cautioned that the deal could contain hidden costs that would disadvantage the country.

He also pointed out that Nigeria already has market access and could instead issue Eurobonds or seek concessional borrowing, options that should be explored before proceeding with the TRS.

In its report, the Fund also recommended that the federal government consider raising tax rates over the medium term to strengthen the nation’s fiscal position.

Details soon…

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