Raising concerns over transparency and accountability in the Federal Government’s $5 billion financing arrangement with First Abu Dhabi Bank, the Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Oye, questioned the composition of the President Bola Tinubu-led administration’s reported N20.4 trillion in incremental resources and N30.64 trillion in additional expenditure.
Oye stated that the government’s handling of the Abu Dhabi facility required greater public disclosure, particularly because the transaction involves public institutions, sovereign obligations and public collateral.
His position followed the presentation of the Federal Government’s economic reform scorecard by the Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, on August 19, 2026.
Oyedele had said the government would not publish details of how funds from the Abu Dhabi facility were being spent, arguing that government’s expenditure was already subject to public reporting, questioning why that particular facility should be treated differently.
But the Oye said the explanation did not adequately address the accountability concerns surrounding the transaction.
He said the government should disclose the material terms of the facility, including the drawdown schedule, purpose of funds, collateral framework, fees, margin-call provisions, early-termination triggers and periodic utilisation reports.
He stressed that legislative approval of the facility was not the same as continuous public accountability.
Beyond the Abu Dhabi facility, the Alliance queried the presentation of the government’s claim that reforms had generated approximately N20.4 trillion in incremental Federal Government resources.
The figure, according to the Ministry’s scorecard, comprises N5.43 trillion in estimated Federal Government subsidy savings, N3.12 trillion in other incremental revenues and N11.85 trillion in incremental borrowing.
The organisation noted that borrowing accounted for about 58 per cent of the stated N20.4 trillion.
Oye, therefore, argued that the figure should not be interpreted as N20.4 trillion in internally generated or “free” resources, but rather as a combination of fiscal savings, additional revenue and financing.
According to the report, currency-in-circulation increased from N3.325 trillion in 2021 to N5.733 trillion in 2025, representing a nominal growth of 72.4 per cent over the period.
But after adjusting for inflation, the report said the picture changed significantly, with the purchasing power of cash held by Nigerians falling by approximately 29 per cent between 2021 and 2025.
The report challenged the CBN’s explanation that the increase reflected stronger economic activity. It noted that while Nigeria’s real Gross Domestic Product (GDP) grew by 3.87 per cent in 2025 from 3.38 per cent in 2024, yearly average inflation stood at 23.01 per cent during the same period.
Using inflation adjustment, the report calculated that real currency-in-circulation declined by approximately 14.3 per cent in 2025, despite the nominal increase in cash supply.
COURTESY: Guardian Nigeria
