The Federal Government has drawn down an initial $1.5 billion from a $5 billion financing facility arranged with First Abu Dhabi Bank, the largest lender in the United Arab Emirates. The funds represent the first tranche of a Total Return Swap facility approved by the National Assembly on March 31, 2026, despite growing concerns from global financial institutions about African countries’ increasing reliance on complex derivative financing.

According to reports, the funds will be used to support the 2026 budget, finance key infrastructure projects, and refinance existing debt obligations. The transaction was disclosed by sources familiar with the deal, who spoke on condition of anonymity because they were not authorised to discuss the matter publicly.