As the use of Total Return Swaps (TRS) continues to expand, experts are raising concerns over the opaque nature of these financial instruments, highlighted by Nigeria's US$5 billion arrangement with First Abu Dhabi Bank. According to the analysis, these complex structures can conceal the true level of public indebtedness while increasing financing costs across the continent. The conclusion is clear: African parliaments should urgently require greater transparency and mandatory impact assessments to prevent hidden costs from ultimately being passed on to taxpayers.
