DMO: FG Didn’t Pledge Oil Revenues, Strategic Assets as Collateral for $5bn Abu Dhabi Bank’s Facility

The Debt Management Office (DMO) has clarified that the federal government did not pledge oil revenues or strategic assets like ports or airports as collateral for the $5 billion Total Return Swap (TRS) facility with First Abu Dhabi Bank. Instead, Nigeria pledged naira-denominated FGN bonds, which are domestic securities managed through fiscal and monetary policy tools. The DMO promised to disclose all drawdowns and collateral quarterly in public debt data. The TRS is a six-year derivative-based arrangement providing immediate US dollar liquidity in exchange for local bonds valued at 133.3 per cent.

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