The Federal Government paid $22.5 million in charges on its $1.5 billion Total Return Swap financing from First Abu Dhabi Bank, FAB, during the second quarter of 2026.
The payment was disclosed in the latest external debt service report released by the Debt Management Office, DMO.
According to the report, the entire $22.5 million was classified as “other charges”, with no principal or interest payment recorded on the facility between April and June 2026.
The amount represents 1.5 per cent of the $1.5 billion already drawn from the broader $5 billion financing programme approved for the Federal Government.
The DMO did not provide details on what the charge covered, leaving unclear whether it was related to arrangement fees, transaction costs, commitment fees or other expenses connected to the financing structure.
Nigeria secured approval for the Total Return Swap arrangement with FAB as part of efforts to raise foreign currency for the 2026 budget, fund infrastructure projects and refinance existing obligations.
Under the arrangement, Nigeria receives dollar liquidity while providing naira-denominated Federal Government securities as collateral.
The facility has a six-year tenor, with a break option after three years. The first drawdown was priced at SOFR plus 395 basis points.
The transaction has attracted scrutiny because of its structure, cost and collateral requirements. The International Monetary Fund had earlier warned that such financing arrangements could be complex, opaque and expose Nigeria to additional financial risks.
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