By Emma Ujah, Abuja Bureau Chief

The International Monetary Fund (IMF) has counselled the federal government against the proposed $5billion Total Return Swap (TRS) External Financing Programme with the First Abu Dhabi Bank.

Fielding questions during the Nigeria 2026 Article IV briefing on Tuesday afternoon, the Resident Representative of the Fund in Nigeria, Mr. Christian Ebeke, warned Nigeria against hidden charges in the deal that would be to the disadvantage of the country.

He also noted that Nigeria has market access and could issue Eurobonds or borrow from concessional sources, which should be explored, rather than go for the TRS.

The Fund, in its report, also suggested tax rate increases over the medium-term in Nigeria as the federal government pushes to strengthen the nation’s fiscal position.