The Federal Government has confirmed the first drawdown of $1.5 billion from its $5 billion financing facility with First Abu Dhabi Bank (FAB), marking the initial disbursement under the loan arrangement.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this while briefing journalists after Monday's Federal Executive Council (FEC) meeting in Abuja.

Oyedele said the financing facility, which received approval from the National Assembly, is intended to refinance costly existing debts, fund critical infrastructure projects, and support the implementation of the 2026 budget.

"The approval for that loan went to the National Assembly, so everybody is aware of it. It's for refinancing of expensive debts, financing of infrastructure, as well as budgets," the minister said.

He explained that the government would not issue public announcements for every drawdown from the facility, describing the process as a routine financing arrangement.

"We don't want to start making press releases each time we do a drawdown. It is not different from any other loan," he added.

The minister's remarks represent the first official confirmation that Nigeria has begun accessing the facility, following reports by Bloomberg that the country recently obtained about $1.5 billion through a Total Return Swap with First Abu Dhabi Bank.

Oyedele further explained that the $5 billion facility was deliberately structured to be accessed in phases, allowing the government to borrow only what it needs at a given time and reduce interest costs.

"The loan is meant to be a drawdown in tranches, and one of the advantages of that is, if you need $5 billion and you take everything at once, you start paying interest even though you're not spending all of it now. So, this has been structured in a way that makes us even more efficient in the cost of borrowing by taking what we need part time," he said.

According to the minister, the phased drawdown is part of the Federal Government's broader debt management strategy aimed at reducing borrowing costs while ensuring adequate funding for priority infrastructure projects and budget implementation.

FG Confirms First $1.5bn Drawdown from $5bn Abu Dhabi Loan Facility

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