News
Tinubu’s govt ignores IMF, draws additional loan of $2.5b from UAE
President Bola Tinubu Federal Government has drawn down $1.5bn from a $5bn financing facility arranged with the United Arab Emirates’ largest lender, First Abu Dhabi Bank, despite growing concerns from global financial institutions over the increasing use of complex derivative financing by African sovereigns.
Bloomberg reported on Friday that the latest drawdown represents the first tranche of a $5bn Total Return Swap facility approved by the National Assembly on March 31, 2026, and is expected to support the 2026 budget, finance infrastructure projects, and refinance existing debt obligations.
The report quoted people familiar with the transaction, who asked not to be identified because they were not authorised to speak to the media.
The report read, “Nigeria has accessed the first tranche of a $5bn derivatives deal with the United Arab Emirates’ largest lender, pressing ahead with a transaction that has been scrutinised for being opaque.
“The West African nation drew about $1.5bn in the last couple of weeks from a total return swap transaction with First Abu Dhabi Bank PJSC, according to people familiar with the transaction, who asked not to be identified because they were not authorised to speak to the media.”
The transaction comes at a time when Nigeria is facing higher borrowing costs in international capital markets, forcing the government to seek alternative financing arrangements to shore up its fiscal position and improve access to foreign exchange liquidity.
Under the arrangement, Nigeria is required to pledge Federal Government securities worth about 133 per cent of any amount drawn under the facility. This means that for the full $5bn facility, the government would have to post approximately $6.65bn worth of naira-denominated bonds as collateral.
In return, the Abu Dhabi-based lender provides dollar liquidity to the Nigerian government. The Federal Government will pay a floating interest rate benchmark plus about four percentage points, while the lender receives the returns generated by the underlying government securities.
The transaction effectively allows Nigeria to unlock immediate dollar funding without issuing new Eurobonds or taking on traditional external loans at prevailing market rates, which have become increasingly expensive for frontier economies.
The government has already indicated that the proceeds from the initial $1.5bn drawdown will be deployed to support budget implementation, fund critical infrastructure projects, and refinance costlier domestic and external debts.
However, the financing arrangement has attracted criticism from international financial institutions and market analysts over concerns about transparency and potential hidden liabilities.
In its June 2026 assessment of African sovereign debt markets, the International Monetary Fund warned that derivative financing structures such as total return swaps are often opaque and difficult for investors and creditors to monitor.
The IMF noted that such arrangements are “hard to track, hard to value in real time, and can obscure the true extent of a country’s financial obligations.”
Three days ago, Fitch Ratings warned that Nigeria’s planned $5bn financing arrangement with First Abu Dhabi Bank could increase sovereign debt risks and reduce transparency in public debt reporting.
The Enugu State Government has suspended His Royal Majesty, Igwe Eze William Ezugwu, the traditional ruler of Ibagwa Ogbozalla Opi Autonomous Community, in Nsukka Local Government Area of Enugu state.
The state government accused Igwe Ezugwu of violating provisions of the state’s Traditional Rulers Law.
In a letter of suspension dated September 24, the Enugu State Government cited his alleged failure to constitute his cabinet, failure to establish a Town Union governing body, and persistent conduct deemed inconsistent with the laws governing traditional rulers in the state.
The suspension comes barely three weeks after Igwe William Ezugwu received NDC presidential candidate Peter Obi at his palace in Opi, Nsukka LGA, where he reportedly blessed Obi’s presidential ambition.
The Deputy Commander of Operation Rainbow, CSP (Chief Superintendent of Police) Dennis David Babale, has been killed after gunmen suspected to be Fulani Bandits ambushed personnel of the security outfit along the Bokkos-Barkin Ladi road in Barkin Ladi Local Government Area of Plateau State.
Operation Rainbow is a State-backed community security and intelligence-gathering outfit in Plateau State, Nigeria, originally established in 2010 under former Governor Jonah Jang and recently revamped by Governor Caleb Mutfwang to combat rural violence and beef up grassroots security.
The incident reportedly occurred at about 4:06 p.m. on Tuesday, September 22, 2026 when the personnel, travelling in a Toyota Hilux vehicle, came under attack by unidentified gunmen.
Troops of Sector 4, Operation ENDURING PEACE (OPEP), responded to a distress report and moved to the location of the attack.
Sources told reporters that Babale sustained gunshot wounds during the ambush and was evacuated to the General Hospital, Barkin Ladi, for medical attention.
Following the attack, troops, working alongside personnel of other security agencies, launched offensive operations and a manhunt for the assailants within the general area.
Security forces have intensified efforts to track the attackers and prevent further attacks along the route.
Director General/CEO of the Nigerian Meteorological Agency (NiMet) and Nigeria’s Permanent Representative at the World Meteorological Organization, Prof. Charles Anosike and other Chief Executive Officers of similar agencies across the world, have concluded a one week high level dialogue on Climate Science Information for Climate Finance and the 53rd Senior Official Field Exchange (SOFE) in Beijing, China.
The event which was hosted by World Meteorological Organization (WMO), took place from September 14 to 18, 2026 and featured discussions on: strengthening the role and leadership development of National Meteorological and Hydrological Services (NMHSs) in mobilizing climate finance; aligning scientific and technical capabilities with risk-informed, people-centred early warning systems; shifting from technical assistance to sustainable investments by expanding practical cooperation between meteorological frameworks and multilateral financing entities; and support to NMHSs leadership on strengthening strategic thinking and fostering productive partnerships.
Held back-to-back with the High-level dialogue was the 53rd Senior Official Field Exchange to Fujian Province for first-hand exposure to the implementation of Multi-hazard, Alert, Zero-gap and Universal (MAZU) platform – China’s AI-driven meteorological early warning solution in support of the Early Warnings for All (EW4All) initiative and disaster risk reduction practices through technical exchanges, field visits and peer learning.
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