By Tony Obiechina, Abuja

The International Monetary Fund (IMF) has warned Nigeria that its planned $5bn (approximately N7tn) financing deal with First Abu Dhabi Bank carries transparency and refinancing risks, saying derivative-based transactions are often opaque and complex.

“Our view is that the transaction in these types of structures carry risks.

Usually they are opaque so the terms are not always very transparent when we reviewed these instruments across countries,” Christian Ebeke, IMF Mission Chief for Nigeria, told reporters on Tuesday.

He said Nigeria could instead issue Eurobonds or seek concessional financing as more transparent and stable alternatives.

Nigeria’s Senate approved the total return swap agreement with the UAE lender in April, joining other African borrowers, including Senegal and Angola that have tapped similar arrangements over the past year.

The deal would allow Nigeria to raise funds through a structured financing arrangement rather than a conventional sovereign bond issuance. The Federal Government intends to use the proceeds to refinance costly debt and fund infrastructure projects.

The warning came alongside the IMF’s 2026 Article IV Consultation Report on Nigeria, in which the Fund praised the sweeping reforms undertaken by President Bola Tinubu since 2023, including the removal of fuel subsidies, exchange rate liberalisation and tighter monetary policy.

According to the IMF, the reforms have helped rebuild economic buffers, restore investor confidence and improve Nigeria’s access to international capital markets. The Central Bank of Nigeria’s gross reserves now stand at $50bn, their highest level in 17 years.

However, the Fund cautioned that the gains had yet to translate into meaningful improvements in living conditions for many Nigerians.

“Conditions remain difficult for many Nigerians, with poverty and food insecurity likely to worsen in the current external environment,” the IMF Executive Board stated.

The Fund said poverty currently affects 63 per cent of the population, while an estimated 27 million people face food insecurity. It added that rising global fuel, food and fertiliser prices, partly linked to the ongoing Middle East conflict, were worsening economic hardship despite stronger headline economic indicators.

The IMF also warned that Nigeria’s reliance on volatile foreign portfolio investment poses rollover risks and urged policymakers to attract more stable, long-term capital, particularly foreign direct investment.

By David Torough, Abuja

President Bola Tinubu has assured Nigerians that his administration is steadily addressing the country’s economic and security challenges, insisting that ongoing reforms are beginning to deliver positive results while unveiling fresh measures to safeguard public health against a potential Ebola outbreak.

Speaking at the 2026 Democracy Day News Conference in Abuja, commemorating 27 years of uninterrupted democratic governance, the President, represented by Secretary to the Government of the Federation, Senator George Akume, acknowledged that inflation, insecurity and other socio-economic difficulties remain major concerns but stressed that government interventions are gaining traction.

Tinubu said recent economic indicators showed sustained growth, with Nigeria’s Gross Domestic Product recording 4.07 per cent growth in the fourth quarter of 2025 and 3.89 per cent in the first quarter of 2026. He highlighted fiscal reforms, social investment programmes, student loans, consumer credit schemes and expanded healthcare coverage as evidence of progress under his administration’s Renewed Hope Agenda.

The President also said security agencies were being strengthened through improved funding, recruitment and international cooperation to combat terrorism, banditry and cybercrime, while calling on citizens to support national security efforts through vigilance and information sharing.

Amid concerns over renewed Ebola outbreaks in parts of Africa, Tinubu approved the immediate release of N10 billion to boost Nigeria’s preparedness and response capacity. The funds will support the Nigeria Centre for Disease Control and Prevention (NCDC) and other critical public health emergency activities.

He also approved the establishment of a Presidential Task Force on Ebola Virus Disease Preparedness and Emerging Public Health Threats, chaired by the Chief of Staff to the President, Femi Gbajabiamila, to coordinate national response measures.

The Federal Government has consequently intensified surveillance at airports and border points, activated isolation centres in Lagos and Abuja, strengthened passenger screening and health declaration systems, and directed enhanced monitoring of travellers arriving from high-risk countries.

Tinubu maintained that despite lingering challenges, the nation was making measurable progress and urged Nigerians to remain united, insisting that democratic governance, institutional reforms and national cohesion remain the surest path to sustainable development and prosperity.

By Mike Odiakose, Abuja

Construction giant, Julius Berger Nigeria PLC, has reported strong financial performance for the 2025 financial year, as the construction company prepares to hold its 56th Annual General Meeting (AGM) on June 18, 2026 in Abuja.

The company, in its latest annual report, posted significant increases in revenue and profitability, underscoring what it described as a year of efficient project execution and sound financial management.

Revenue rose by 34.1 per cent compared to the ₦566.71 billion recorded in 2024, reflecting increased activity across its core business segments.

Profit Before Tax also recorded a notable jump of 38.5 per cent, reaching ₦40.95 billion, up from ₦29.57 billion in the preceding year.

Net profit climbed to ₦30.17 billion, marking one of the company’s strongest performances in recent years, while earnings per share nearly doubled, increasing by 96 per cent to ₦18.69 from ₦9.54 in 2024.

On the back of the improved results, the Board of Directors has proposed a final dividend of ₦4.25 per share, translating to a total payout of ₦6.8 billion to shareholders, subject to approval at the AGM.

Julius Berger attributed the impressive performance to sustained delivery across its four main operational segments; civil engineering, building construction, services, and diversification. 

During the year, the firm executed several major infrastructure and building projects across the country, further strengthening its position as a leading engineering construction company.

In a strategic move to expand its footprint beyond Nigeria, the company also established a new subsidiary in the Republic of Benin, signalling its entry into the broader West African market. The expansion is expected to open new opportunities and drive future growth.

The company also took steps to streamline its operations and focus on its core business. In September 2025, it approved the leasing of its cashew processing facility in Epe, Lagos State, to a specialist operator. The move is aimed at ensuring continued productivity of the facility while allowing Julius Berger to concentrate resources on its primary engineering and construction activities.

Looking ahead, the company remains optimistic about its growth prospects, given its strong financial position and technical expertise as key drivers for securing new projects both in Nigeria and regionally.

The upcoming AGM is expected to provide shareholders with further insights into the company’s performance and strategic direction, as Julius Berger continues to position itself for sustained growth in Nigeria’s infrastructure sector and beyond.

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