IMF counsels FG against $5bn UAE loan, seeks higher taxes

The IMF advised the Nigerian Federal Government against a $5 billion loan from the First Abu Dhabi Bank of the United Arab Emirates, citing significant risks. It recommended instead issuing Eurobonds or borrowing from multilateral institutions on concessional terms. The IMF also stated that Nigeria needs to raise tax rates over the medium term, as its VAT rate is about half that of neighboring countries. According to the report, 63% of Nigerians live in poverty, and 27 million people faced food insecurity in the fall of 2025.