Federal Executive Council, FEC, meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja on Thursday approved a $2.2 billion external borrowing plan to strengthen the country’s finances and support economic reforms.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this to State House Correspondents at the end of the meeting.
He explained that the financing package would be raised through a combination of Eurobonds and Sukuk bonds, with approximately $1.7 billion expected to come from the Eurobond offer and $500 million from Sukuk financing.
He added that the move aimed at completing the federal government’s borrowing programme and would proceed once the National Assembly reviewed and approved the plan.
According to Edun, the borrowing would occur within this fiscal year, and the ultimate funding arrangement would be decided by market conditions and transaction adviser advice.
He said, “The first objective is to complete the federal government’s external borrowing program with the approval of the $2.2 billion financing package, which will include access to the international capital market through a combination of Eurobonds and Sukuk bonds—approximately $1.7 billion from the Eurobond offer and $500 million from Sukuk financing.
“The actual composition of the financing will be finalized once the National Assembly has considered and approved the borrowing plan. After the external borrowing approval is granted, the funds will be raised as soon as possible within the year.”
The minister said, “The exact combination of instruments will depend on the advice of transaction advisers and market conditions when we decide to enter the market.
“Earlier in the year, we demonstrated the resilience of the Nigerian financial markets and their capacity to handle more complex and sophisticated offerings, such as the domestic issuance of dollar bonds that attracted investors from both Nigeria and abroad.”
As an indication of increased trust in Nigeria’s economic recovery under President Tinubu’s administration, Edun emphasised the significance of this approval.
He used recent triumphs in issuing domestic dollar bonds that drew in both domestic and foreign investors to demonstrate the Nigerian financial market’s tenacity.
He said that this most recent overseas borrowing was made possible by the government’s economic agenda, which includes market-based pricing for important economic variables like foreign exchange and petroleum goods.
