The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has rejected calls for the Federal Government to publish details of how it intends to spend funds drawn from its $5 billion financing facility with First Abu Dhabi Bank.

Oyedele said the transaction had come under unnecessary scrutiny, insisting that the facility was approved by the National Assembly and structured primarily to enable the government to refinance more expensive debt.

The minister spoke on Wednesday during a media briefing in Abuja.

The Federal Government recently accessed about $1.5 billion, representing the first tranche of the $5 billion Total Return Swap facility arranged with First Abu Dhabi Bank.

The facility was approved by the National Assembly on March 31, 2026, with the initial drawdown expected to support the 2026 budget, infrastructure projects and the refinancing of existing debt obligations.

However, the financing arrangement has attracted concerns from the International Monetary Fund and Fitch Ratings over transparency and the potential risks associated with derivative-based borrowing.

Responding to questions on whether the government would publish details of how the funds would be spent, Oyedele said the government would provide information on its overall spending but questioned why the Abu Dhabi facility should receive special treatment.

“We will not publish how we are spending it. We will publish how we spend government money. There’s nothing special about that loan,” he said.

The minister added that other sources of government financing, including World Bank loans, Eurobonds and Sukuk, had not attracted similar demands for transaction-specific disclosure.

Oyedele also dismissed suggestions that the facility was obtained without due process, stressing that the transaction was presented to and approved by the National Assembly.

“The loan was approved not only by FEC, it was taken to National Assembly,” he said.

According to him, the government deliberately decided to access the facility in phases to avoid paying unnecessary costs on funds that had not yet been deployed.

“We’re assessing it in phases. You don’t want to take all the money at once because if you don’t spend it at once, you incur cost on the extra amount you’ve taken,” he explained.

Oyedele said the financing arrangement also differed from Nigeria’s traditional fixed-rate borrowing because the First Abu Dhabi Bank facility operates on flexible interest rates.

He explained that while an increase in interest rates could raise the government’s cost, a decline in rates would also benefit Nigeria.

“This First Abu Dhabi Bank transaction is flexible rates. It means if rates go up, we pay more. If rates come down, we benefit more,” he said.

The minister maintained that the all-in rate on the transaction was lower than the government’s existing debt portfolio, making the facility suitable for refinancing more expensive obligations.

“So the objective is to use it to refinance expensive debt so you can save money,” Oyedele said.

Under the arrangement, the Federal Government is required to pledge securities worth approximately 133 per cent of the amount drawn as collateral.

The International Monetary Fund has previously expressed concern that derivative financing arrangements such as total return swaps can be difficult to track and value in real time, potentially making a country’s overall financial obligations less transparent.

Fitch Ratings has also warned that Nigeria’s planned $5 billion facility could increase sovereign debt risks and reduce transparency in public debt reporting.

Oyedele, however, said the government would provide further clarification on the transaction, announcing that frequently asked questions would soon be published on the websites of the Ministry of Finance and the Debt Management Office.

“In the next few days, you will see on the website both the Ministry of Finance and DMO the frequently asked questions about this particular debt or bond, just so everybody can please themselves,” he said.

The minister maintained that there was “nothing special” about the facility despite the attention it had received from critics and international media, insisting that the government’s primary focus was to reduce borrowing costs and manage public debt more efficiently.