Nigeria’s Finance Minister and Coordinating minister of the economy, Mr. Wale Edun, says that the Federal Executive Council has approved a $2.2 billion external borrowing plan.
Mr. Edu told journalists after the Federal Executive Council meeting on Thursday in Abuja that it is part of the Nigerian Government’s external borrowing programme for the 2024 Appropriation Act,
He explained that the financing initiative will combine Eurobond and Sukuk offerings—estimated at $1.7 billion and $500 million respectively, to reinforce Nigeria’s fiscal stability.
Edun added that the results of the Nigerian Government’s economic reforms qualified Nigeria for the international capital market financing.
According to him, the final allocation between these financial instruments will be determined based on market conditions and advice from transaction advisors, pending National Assembly approval.
“The first memo was to complete the borrowing programme of the FG in terms of the external borrowing with the approval of the $2.2bn financing programme made up of access to the international capital market for some combination of the Euro bond offer and the Sukuk bond offer.
“A Euro bond of about $1.7bn and Sukuk financing of another $500m the actual makeup of the financing which will be done as soon as the National Assembly has considered and seen fate to hopefully approve of the borrowing plan and the external borrowing approval is given, it will be done this year, as soon as possible after approval.
“The actual combination of instruments that will be raised will depend on what the advisors, the transaction advisors, the commercial advisers, and what they say about market conditions at the time we decide and we want to enter the market,” Edun said.
He added that, earlier in the year, Nigeria’s successful domestic issuance of dollar bonds highlighted the growing resilience and sophistication of the country’s financial market, attracting both local and international investors who showcased confidence in the FG’s economic reform agenda.
This external financing initiative aligns with the administration’s broader economic recovery plan, focused on stabilising macroeconomic conditions, adjusting market pricing for foreign exchange and petroleum products, and supporting local production, he stated.
Edun explained, “Those key prices and those situations have been achieved, particularly as of October to where we had, once again in Nigeria, local refining of petroleum products that paved the way for the completion of what was started on May 29, 2023, which was to correct the macroeconomic imbalances that were in the economy.
“So it is on the basis and the strength of the progress to date that we do have a window to access the international capital market for up to $2.2bn in financing, that is part of the Nigerian 2024 Appropriation Act as amended.”
He disclosed that the Nigerian Government also approved a N400 billion Real Estate Investment Fund, which will revitalise long-term mortgage financing and tackle Nigeria’s massive housing deficit.
Edun explained that the fund, introduced by the Minister of Finance Incorporated, will make affordable, long-term mortgages available to Nigerians, significantly easing access to homeownership and supporting the completion of millions of housing units.
GIK/APA