Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has defended the Federal Government’s $5 billion financing facility with First Abu Dhabi Bank, saying the transaction followed due process and is intended to refinance more expensive debt.

Speaking at a media briefing in Abuja on Wednesday, Oyedele dismissed calls for the government to publish a separate breakdown of how the funds from the facility would be spent.

He argued that the government already publishes information on public spending through its normal budget and financial reporting processes, adding that the loan should not be treated differently from other sources of government financing.

“We will publish how we spend government money. There’s nothing special about that loan,” Oyedele said, noting that similar demands had not been made for funds obtained through the World Bank, Eurobonds or Sukuk.

The Federal Government recently drew about $1.5 billion, the first tranche of the $5 billion Total Return Swap facility approved by the National Assembly in March 2026. The financing is expected to support the 2026 budget, infrastructure projects and the refinancing of existing debt obligations.

Oyedele said the facility was also approved by the Federal Executive Council and the National Assembly, rejecting suggestions that it was arranged without transparency.

He explained that the government is drawing down the funds in phases to avoid paying interest on money that has not yet been used.

The minister added that the financing structure differs from traditional fixed-rate borrowing because it carries a flexible interest rate, allowing Nigeria to benefit if global rates decline.

According to him, the primary goal of the arrangement is to replace higher-cost debt with cheaper financing and reduce the government’s borrowing costs.

The International Monetary Fund and Fitch Ratings have raised concerns about the use of total return swap financing, warning that such arrangements could reduce transparency and increase sovereign debt risks. Oyedele said the Ministry of Finance and the Debt Management Office would publish a detailed set of frequently asked questions on the facility in the coming days to address public concerns.