The Federal Government has confirmed that Nigeria has received the first $1.5 billion from its $5 billion financing agreement with First Abu Dhabi Bank (FAB), marking the initial drawdown under the facility.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this after Monday’s Federal Executive Council (FEC) meeting in Abuja, explaining that the funds will be used to refinance costly existing debts, support infrastructure development and finance budget implementation.
According to the minister, the financing arrangement had already received approval from the National Assembly, adding that the government does not intend to issue separate announcements every time funds are accessed under the facility.
He described the drawdown as a routine process, noting that the financing package was deliberately designed to allow Nigeria to access the funds in phases instead of withdrawing the full amount at once.
Edun explained that the phased structure helps reduce the country’s borrowing costs because interest is paid only on the portion of the loan that has been drawn rather than on the entire approved amount.
He said the strategy forms part of the government’s broader debt management plan aimed at improving borrowing efficiency while providing funding for key national priorities.
The confirmation comes after reports that Nigeria had accessed approximately $1.5 billion through a Total Return Swap arrangement with First Abu Dhabi Bank, representing the first utilisation of the larger $5 billion financing package.
