Nigeria Draws $1.5bn from $5bn Abu Dhabi Facility to Refinance Debt and Fund Infrastructure

The Federal Government has accessed the first $1.5 billion from its $5 billion financing facility with First Abu Dhabi Bank. The drawdown was confirmed by the Minister of Finance, Taiwo Oyedele, after Monday’s Federal Executive Council meeting in Abuja. This facility, approved by the National Assembly, will help refinance expensive debts, support budget implementation and fund priority infrastructure projects. It is structured in tranches so the government pays interest only on funds actually drawn. Oyedele described the arrangement as routine and said there is no plan to issue a press release for every drawdown. Earlier reports indicated the funds were accessed through a total return swap structure designed to reduce borrowing costs.

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