Nigeria Defends $5bn UAE Loan Drawdown Despite IMF Warning Says Finance Minister

Nigeria's minister of finance, Taiwo Oyedele, said the government ignored the International Monetary Fund's warning against a $5 billion loan from First Abu Dhabi Bank because the funds are being drawn in tranches to cut borrowing costs. Speaking after the Federal Executive Council meeting on Monday, Oyedele confirmed that $1.5 billion has already been withdrawn, with the loan approved by the National Assembly. He explained the facility is meant for refinancing expensive debts, financing infrastructure projects and supporting the budget, and that taking the full amount at once would mean paying interest on unused funds. The minister argued that the tranche structure makes the borrowing more cost‑efficient. Nigeria's total public debt stood at N159.28 trillion as of December 2025, a figure critics say shows the country is over‑leveraged. Oyedele countered that critics of the debt are doing a disservice to the nation. The Daily Post reported that financial experts have also raised concerns about the additional loan. The loan drawdowns began earlier this year and are expected to continue as needed for government projects. With the national debt now at N159.28 trillion, consider how future tax policies or public service changes might affect your household budget and what steps you could take to prepare.

SOURCE: https://dailypost.ng/2026/07/01/why-nigeria-ignored-imf-on-5bn-uae-loan-oyedele/