FG pays $22.5m in charges on UAE loan

Nigeria's Federal Government paid $22.5 million in charges on its $1.5 billion Total Return Swap financing from First Abu Dhabi Bank in Q2 2026, according to Debt Management Office data. The payment, classified entirely as "other charges" with no principal or interest, represents 1.5% of the amount drawn from the $5 billion programme. The DMO did not specify the charge's nature, leaving whether it covered arrangement, commitment, or transaction fees unclear. The swap, secured earlier this year, uses naira-denominated government securities as collateral. The IMF and Fitch have warned of opacity and liquidity risks, though the DMO defends the arrangement's safeguards. Nigeria's total exposure to the UAE lender stands at about $3.37 billion.