Atiku Demands Full Disclosure of Tinubu’s $5bn First Abu Dhabi Bank Financing
By The Analyst News Desk
Former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, has demanded full disclosure of the terms and utilisation of Nigeria’s $5 billion financing arrangement with First Abu Dhabi Bank (FAB), amid growing concerns over transparency and the country’s rising debt burden.
Atiku’s demand came after the Federal Government confirmed that Nigeria had accessed the first tranche of about $1.5 billion from the facility, which was approved by the National Assembly earlier this year.
President Bola Ahmed Tinubu had in March sought legislative approval for a structured Total Return Swap (TRS) financing programme of up to $5 billion with First Abu Dhabi Bank. The government said the facility would support budget implementation, priority infrastructure projects and the refinancing of relatively expensive domestic and external debt.
The National Assembly subsequently approved the request, alongside a separate $1 billion financing facility linked to the rehabilitation of critical port infrastructure.
However, the arrangement has continued to attract scrutiny because of its complex financial structure and questions surrounding the precise deployment of the funds.
In his latest intervention, Atiku argued that Nigerians have a right to know how the facility is being utilised, particularly at a time when the country’s debt obligations are increasing and citizens continue to face economic hardship.
The former Vice President also questioned the broader borrowing pattern of the Tinubu administration, citing figures attributed to the Debt Management Office showing a significant increase in Nigeria’s debt stock since the administration assumed office.
Government Rejects Transaction-Specific Disclosure
The controversy intensified after Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the Federal Government would not publish a transaction-specific breakdown of how proceeds from the $5 billion facility would be spent.
Oyedele, speaking during a media briefing in Abuja, maintained that the facility had received legislative approval and that government spending would ultimately be accounted for through established public expenditure processes.
He questioned why the First Abu Dhabi Bank facility should receive special disclosure treatment compared with other sources of government financing, including World Bank loans, Eurobonds and Sukuk.
The minister’s position has, however, fuelled further debate among opposition politicians, economists and civil society actors over the level of transparency surrounding the financing arrangement.
IMF Raises Concerns
The $5 billion deal has also attracted attention from international financial institutions.
The International Monetary Fund has previously raised concerns about the risks associated with complex derivative-based financing arrangements, particularly where the structure and underlying obligations may not be sufficiently transparent.
Nigeria’s facility is structured as a Total Return Swap rather than a conventional sovereign loan, making its financial mechanics more complicated than traditional borrowing.
Nigeria has already drawn approximately $1.5 billion from the facility. The Finance Minister said the government was accessing the money in phases, partly to manage borrowing costs.
Transparency Becomes Central Issue
Atiku’s latest demand therefore places the administration under renewed pressure to provide Nigerians with greater clarity on the financial obligations attached to the facility, the collateral arrangements, interest and associated costs, and the specific purposes for which the funds are being deployed.
The debate is particularly significant because the facility involves substantial public resources and could have long-term implications for Nigeria’s fiscal position.
For the Tinubu administration, the government’s stated position remains that the financing is designed to support fiscal liquidity, refinance more expensive obligations and fund priority government programmes.
For the opposition, however, the central question is whether Nigerians are being given sufficient information to independently assess the cost, risks and benefits of the transaction.
With Nigeria already carrying a substantial public debt burden, the controversy over the First Abu Dhabi Bank facility is likely to remain a major issue in the country’s economic and political discourse ahead of the 2027 general elections.