IMF warns Nigeria of risks in 5 billion dollar swap deal
The IMF warned Nigeria that its planned derivatives agreement with First Abu Dhabi Bank carries risks due to its complex and opaque nature. While praising recent economic reforms, the Fund suggested Nigeria pursue more transparent financing options like eurobonds or concessional loans.
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The International Monetary Fund (IMF) warned Nigeria on June 9 that a proposed $5 billion derivatives deal with a United Arab Emirates lender carries transparency risks. The agreement with First Abu Dhabi Bank follows similar borrowing arrangements recently utilized by Senegal and Angola. Nigeria intends to use the proceeds to refinance expensive debt and pay for infrastructure projects.
