IMF questions Nigeria’s $5bn borrowing structure

By Lawrence Agbo
The International Monetary Fund (IMF) has raised concerns over Nigeria’s plan to secure up to $5 billion in external financing through a derivatives-based arrangement with the First Abu Dhabi Bank in the United Arab Emirates.
The warning was issued by Christian Ebeke, the IMF’s resident representative in Nigeria, who told journalists that such financial structures are often complex and lack transparency in their terms.
According to him, similar transactions in other countries have raised red flags due to limited disclosure and difficulty in fully assessing the obligations involved.
“Our view is that the transaction in these types of structures carry risks. Usually...