Federal Government has confirmed that it has accessed the first $1.5 billion from its $5 billion financing facility with First Abu Dhabi Bank (FAB), marking the initial drawdown from the arrangement.
The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, disclosed this on Monday while speaking with journalists after the Federal Executive Council (FEC) meeting in Abuja.
Oyedele said the financing package, which had previously received approval from the National Assembly, is structured to support debt refinancing, infrastructure development and budget implementation.
“The approval for that loan went to the National Assembly, so everybody is aware of it. It’s for refinancing of expensive debts, financing of infrastructure, as well as budgets,” he said.
The minister explained that the government would not be issuing separate public statements for each drawdown, noting that the arrangement is a standard financing structure.
“We don’t want to start making press releases each time we do a drawdown. It is not different from any other loan,” he added.
According to him, the facility is designed as a phased drawdown arrangement, allowing the government to access funds as needed rather than receiving the full amount at once.
He said the structure helps reduce borrowing costs, as interest is paid only on funds that have been utilised.
“The loan is meant to be a drawdown in tranches, and one of the advantages is that if you need $5 billion and take everything at once, you start paying interest even though you’re not spending all of it immediately,” Oyedele said.
He added that the approach aligns with the government’s broader debt management strategy aimed at improving efficiency in borrowing, lowering financing costs, and ensuring funds are deployed for priority projects and budgetary needs.
Reports had earlier indicated that Nigeria had begun accessing the facility through a structured financial arrangement involving First Abu Dhabi Bank.
The Federal Government said the phased utilisation would continue in line with project funding requirements and fiscal planning objectives.
