Nigeria Clarifies No Strategic Assets Pledged for $5 Billion FAB Facility
The Nigerian government has clarified that no oil revenues, ports, airports, or other strategic national assets were pledged as collateral for its $5 billion Total Return Swap (TRS) facility with First Abu Dhabi Bank (FAB).
The Debt Management Office (DMO) stated in a frequently asked questions document dated August 27, 2026, that the financing arrangement is secured exclusively by naira-denominated Federal Government of Nigeria (FGN) bonds.
The DMO emphasized that the collateral consists of domestic securities within the government's control and can be managed through fiscal and monetary policy instruments.
The TRS arrangement provides the government with an alternative mechanism for raising foreign currency without issuing a conventional Eurobond in international capital markets.