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Tinubu’s govt ignores IMF, draws additional loan of $2.5b from UAE

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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.

 

 

 

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NHRC calls for suspension, prosecution of senator Fadahunsi over threat to kill Accord Party supporters

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The National Human Rights Commission, NHRC, has urged the senate, to suspend the senator representing Osun West, Francis Adenigba Fadahunsi for threatening to kill Accord Party members and supporters if they come out to vote on Saturday.

The senator, while addressing party supporters at Ilesha on Saturday, threatened Accord Party members and urged his party loyalists to kill them if they come out to vote in the coming governorship election August 15.

“From now on, whenever you see Accord members, kill them. I authorise you to kill them. They have wives and children too. This is a Federal Government election. On election day, even if they come with voter cards, we won’t allow them to vote,” the PDP senator said.

Reacting to the development, the Executive Secretary of the Commission, Tony Ojukwu, SAN, said the statement was capable to setting the nation ablaze and lead to abuse of rights of citizens as well as loss of lives.

He described this remarks as incitement to murder, electoral violence, and voter intimidation, saying no well meaning Nigeria should sit by and allow such rhetoric to be tolerated without consequences from the law enforcement authorities.

Ojukwu said it was not enough for the Senator to attempt explaining what he meant by the threat after the massive rebuke from the public, adding that many of his followers have already taken his directives to heart.

In a statement Wednesday, Ojukwu also urged all party chairmen to issue directives to their members to desist from any hateful , inciting, intimidating and call to violence statements ahead of all coming up elections.

“Any candidates or party faithfuls who violate these directives should be called out for violating constitutional and electoral frameworks for peaceful elections and should be surrendered to law enforcement authorities for prosecution,” Ojukwu said.

“This is not politics. This is a licence to kill. A public officer who tells citizens to murder other citizens because of party affiliation must not be allowed to remain in office for one more day,” Ojukwu said.

“The Senate leadership is hereby called upon to suspend Senator Fadahunsi immediately pending conclusive investigation by the police.

The Police and DSS must also arrest, investigate, and prosecute him now. We cannot wait until blood is spilled in Osun before we act. Prevention is the duty of the state and the leadership of the NASS is part of the state.”

The alleged remarks come days before the August 15 Osun governorship election

The NHRC said that given the gravity of the statements attributed to the Senator in the video, the matter requires urgent investigation by security agencies under due process.

The Commission is calling on authorities to immediately suspend Senator Fadahunsi from all Senate duties pending investigation.

The Commission urged citizens of Osun to remain peaceful and to report any threats to the Commission and relevant authorities as it has set up a situation room to report and document such incidents during the election period.

 

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I have no regrets for my statement, I won’t apologize- says Sheikh Yahya Jingir

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Sheikh Yahya jingir, an Islamic cleric and leader of the Izala Scholars Council, has said he has no regret over his recent declaration of support for a Muslim-Muslim presidential ticket, despite criticisms trailing the statement.

Jingir, who spoke in an interview with BBC Hausa monitored by Nationwide Reports on Wednesday, said his position was not politically motivated or intended to campaign for President Bola Ahmed Tinubu, but was based on what he described as his responsibility as a Muslim.

He said he would continue to support and encourage Muslims to back a Muslim-Muslim ticket, regardless of the criticisms his position might attract.

“I will continue to support and encourage the Muslim-Muslim ticket. What they say would not stop me. They started it; at a point, we suffered in their hands,” he alleged.

The cleric had, during a mass wedding organised by the Kano State Government for 1,500 couples, declared his support for the Muslim-Muslim arrangement and urged Muslims to vote in a manner that would demonstrate their numerical strength in the country.

Jingir said he decided to support the arrangement after President Tinubu “raised the flag” of the Muslim-Muslim ticket.

He added that, as a Muslim preacher, he had the right to advocate a political arrangement that was consistent with his religious convictions.

The cleric also challenged claims that Christians or other religious groups constituted a larger population than Muslims in Nigeria.

His remarks have continued to generate reactions, with some commentators describing them as divisive, while others have defended his right to express his religious and political views.

 

 

 

 

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Nigerian senator Francis Adenigba Fadahunsi urges loyalists to kill Accord party members, supporters on Osun election day

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Francis Adenigba Fadahunsi, the senator representing Osun East Senatorial District, has threatened to kill Accord Party members and supporters if they are seen on election day.

The Osun state governorship election is taking place on Saturday August 15.

Fadahunsi, who spoke in Yoruba while addressing supporters in Ilesha, said there would be trouble if members of the Accord Party were seen in the area, urging his supporters to come out and vote during the election.He also called on those present to record his statement, while making a remark that suggested his supporters would confront Accord Party members if they encountered them before the election.

“If we hear of Accord Party members coming to Ilesha, there will be trouble. We will all come out and vote. Please record me. We are here, and between now and the election, if we see anyone from the Accord Party, we will kill them,” he said.

The statement comes amid heightened political activities in Osun State ahead of the governorship election, with political parties intensifying campaigns and mobilisation of supporters across the state.

Fadahunsi is a member of the Peoples Democratic Party (PDP) and currently represents Osun East Senatorial District in the National Assembly.

 

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