Nigeria is shaking up its economic strategy with a $5 billion “total return swap” deal involving the United Arab Emirates’ top lender, First Abu Dhabi Bank. As global interest rates climb due to the Iran war, President Bola Tinubu’s administration is turning to these specialized derivatives to secure funding that is significantly cheaper than what traditional markets provide. This creative move aims to bypass expensive international bonds to build critical infrastructure such as ports and highways while refinancing older, costlier debts. The West African nation joins Angola and Senegal in embracing this strategy, pledging naira-denominated collateral worth over 130% of the loan. With the 2026 budget expanding by 17%, the administration is seeking every advantage.
Bloomberg
