Nigeria has accessed the first tranche of its $5 billion derivatives financing arrangement with First Abu Dhabi Bank (FAB), drawing about $1.5 billion under the deal approved by the national assembly in March.

This is despite caution by the International Monetary Fund (IMF)  against proceeding with the proposed $5 billion structured Total Return Swap (TRS) financing program with First Abu Dhabi Bank.

IMF said that the complex derivative-based financing agreements are often opaque and carry hidden financial risks.

According to Bloomberg on Friday however, the federal government received the funds in the past two weeks through a structured total return swap (TRS) transaction with the United Arab Emirates’ largest lender, citing people familiar with the matter.

On March 31, the national assembly approved President Bola Tinubu’s request to secure up to $6 billion in external borrowing.

The borrowing plan comprised two facilities from the United Arab Emirates (UAE) and the United Kingdom, including a structured TRS financing programme of up to $5 billion from First Abu Dhabi Bank.

Advertisement

Tinubu had said the proposed borrowing would increase Nigeria’s public debt stock, which stood at $110.3 billion (about N159.2 trillion) as of December 31, 2025.

The drawdown comes despite concerns raised by Fitch Ratings over the financing arrangement.

Fitch warned that while such transactions can provide liquidity, diversify funding sources and lower borrowing costs, they often fall outside conventional debt-reporting frameworks and could weaken transparency and legislative oversight.

The rating agency also said the structure could expose Nigeria to additional foreign exchange risks if domestic bond yields rise or the naira depreciates.

Also, the International Monetary Fund has cautioned that the derivative-based financing arrangements are often opaque and complex, making it difficult to assess the full extent of governments’ debt obligations.

Paystack has launched Paystack Index, an experimental AI-powered payments tool, enabling users in Nigeria to complete everyday transactions through AI assistants such as ChatGPT and Claude.

The product allows users to buy airtime, send money via Zap by Paystack and order food from Chowdeck using simple text prompts. Instead of switching between multiple apps, users can instruct an AI assistant to execute transactions directly.

Paystack Index acts as a bridge between AI agents, merchants and Paystack’s payments infrastructure, while ensuring users retain control of authorised transactions.

The company said it does not store sensitive financial information such as card details, PINs or bank account credentials.

Developed with support from TSG Labs, Paystack’s innovation arm, the product builds on Paystack Checkout and Zap and forms part of the company’s broader work on AI-enabled commerce.

It is initially available to selected Zap users in Nigeria through an early-access beta programme and currently supports airtime and data purchases, wallet funding, money transfers and food orders.

Paystack said the launch reflects its belief that AI agents are emerging as a new interface for commerce, enabling users to move from prompts to real-world transactions.

Announced by co-founder and chief executive officer Shola Akinlade, the product positions AI assistants as execution layers for payments and commerce, rather than just tools for information and recommendations.

The launch comes amid rising AI adoption in Nigeria. According to a Google-Ipsos survey, 88% of Nigerians surveyed said they had used generative AI in the past year, while 62% said they used it for everyday tasks such as planning trips, meals or workouts.

The launch also follows Paystack’s recent restructuring under The Stack Group (TSG), which created dedicated business units for merchant payments, consumer transactions, banking services and emerging technologies.

Paystack plans to expand Paystack Index to more merchants, services and African markets, including Ghana, Kenya and South Africa, as it evaluates user behaviour and AI-powered checkout experiences.

As Nigeria continues its journey towards a more efficient, transparent and citizen-focused tax system, the Nigerian Revenue Service (NRS) and the Chartered Institute of Taxation of Nigeria (CITN) have reaffirmed their commitment to strengthening tax awareness, promoting voluntary compliance and supporting the nation’s economic transformation.

This renewed commitment was reinforced during a high-level courtesy visit by the President and Governing Council of CITN to the newly inaugurated headquarters of the Nigerian Revenue Service in Abuja as part of activities marking the2026 National Tax Awareness Day.

The CITN team also visited the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele who charged CITN to institute an annual awards to recognise the most compliant citizens.

The Minister who thanked the leadership of CITN for the initiative of a national tax awareness day and for all they have been doing to support the tax reform of the federal government, charged the institute to do more because according to him, many Nigerians still believe that when government speaks about tax it is just to take money from the people.

He said if Nigeria gets its tax system right, the level of development will be monumental.

According to him, “We are still not getting enough revenue from tax, it is not about increasing tax, but making sure that those who are supposed to pay tax pay. We want to promote fairness in tax administration.”

The tax awareness event brought together key stakeholders within Nigeria’s tax ecosystem, including Executive Directors of the NRS, members of CITN Governing Council, senior management staff, tax professionals and industry leaders.

At the NRS, the team was received by the Executive Director, Finance and Corporate Services, Mohammed Abubakar, who represented the Executive Chairman of NRS, Dr. Zacch Adedeji; Executive Director, Technology and Innovation, Iniabasi Akpan; Group Director, Medium Tax Group, Dr. Gbenga Daniel; Group Director, Emerging Tax Group, and other senior officials of the service.

Addressing guests on behalf of the Executive Chairman, Abubakar highlighted the significance of the occasion as a commemoration of one year since the signing of the landmark tax reform legislation.

“That historic milestone signalled the beginning of a new era in Nigeria’s tax administration, one anchored on simplicity, fairness, transparency, efficiency and service delivery,” he said.

He said the reforms are designed to build a tax administration system that is trusted, technology-driven and responsive to the needs of individuals and businesses.

According to him, the presence of Executive Director, Technology and Innovation, Iniabasi Akpan, further underscored the central role technology plays in the Service’s ongoing transformation agenda.

“With initiatives such as Rev360 and other digital platforms, the Service continues to position itself as a forward-looking institution leveraging innovation to deliver world-class tax administration services”, he said, adding that sustainable revenue mobilisation goes beyond enforcement and depends heavily on awareness, education, trust and taxpayer confidence.

“Taxpayers are more likely to comply when they understand their obligations, appreciate the value of taxation and have confidence in the institutions administering our tax laws,” he stated.

The Group Director, Medium Tax Group, Dr. Gbenga Daniel, described the occasion as a significant milestone not only for tax professionals but for the entire nation.

He emphasised that the Nigerian Revenue Service remains committed to collaborating with professional bodies and stakeholders to advance taxpayer education, improve service delivery and strengthen voluntary compliance nationwide.

“The Nigerian Revenue Service values its longstanding partnership with CITN. Together, our institutions share a common vision of improving tax administration and fostering voluntary compliance for national development,” he added.

The gathering served as both a celebration and a reflection on the progress recorded since the signing of Nigeria’s landmark tax reform legislation exactly one year ago by President Bola Ahmed Tinubu.

Earlier in his speech, the Presiden/Chairman of Council, CITN Innocent Ohagwa, thanked the leadership of Nigerian Revenue Service for collaborating with the Institute in executing the National Tax Awareness Day initiative.

He said the initiative represents a coordinated nationwide movement designed to deepen tax awareness, improve tax education, encourage voluntary compliance and reinforce CITN’s position as a leading institution supporting the implementation of Nigeria’s tax reform agenda.

“Today’s date, June 25, holds dual significance. It commemorates the signing of the tax reform legislation by the President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, while also coinciding with the peak period for filing corporate tax returns. This makes it both a symbolic and strategic date for the initiative”, he said.

He noted that the theme of the 2026 National Tax Awareness Day which is: “Tax Awareness for National Growth Through Reforms, Compliance and Shared Prosperity” captures the essence of the tax reforms currently transforming Nigeria’s tax landscape.