NIGERIA DRAWS $1.5BN UAE LOAN DESPITE IMF CONCERNS

Nigeria has finalised the drawdown of a $1.5 billion loan from the United Arab Emirates (UAE) to support its economic recovery and infrastructure projects, even as the International Monetary Fund (IMF) raised concerns over rising public debt levels.

The facility, secured through bilateral negotiations, will be directed towards critical sectors including power, transportation, and agriculture. Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, described the loan as timely support for the country’s development priorities.

While acknowledging the IMF’s caution on debt sustainability, Edun emphasised that the concessional terms of the UAE facility and its alignment with productive investments would help mitigate risks. “We remain committed to prudent borrowing and ensuring that every dollar borrowed delivers tangible returns,” he stated.

The development comes amid ongoing discussions with international creditors on Nigeria’s fiscal strategy. Analysts have called for stronger revenue generation measures and expenditure controls to maintain debt within sustainable limits.

The UAE loan is part of broader efforts by Nigeria to diversify its financing sources and strengthen economic ties with key partners in the Middle East.