The Federal Executive Council (FEC) has approved a $2.2 billion external borrowing plan as part of the Federal Government’s financing strategy under the 2024 Appropriation Act. Finance Minister, Mr. Wale Edun, confirmed this development following a meeting at the Aso Rock Villa, Abuja.
This financing initiative is set to include Eurobond and Sukuk offerings, estimated at $1.7 billion and $500 million, respectively. The goal is to enhance Nigeria’s fiscal stability, and Edun emphasized that the success of the government’s economic reforms positioned Nigeria for this opportunity in the international capital market.
The exact distribution of the funds between Eurobond and Sukuk will depend on market conditions and recommendations from financial advisors, pending approval by the National Assembly. The funds are expected to be raised as soon as possible after approval.
Earlier in the year, Nigeria successfully issued domestic dollar bonds, showcasing the country’s growing financial resilience. This external borrowing aligns with the government’s broader economic recovery plan, aimed at stabilizing macroeconomic conditions, adjusting foreign exchange and petroleum product pricing, and boosting local production.
Additionally, the FEC approved a N400 billion Real Estate Investment Fund (MOFI), which aims to address Nigeria’s housing deficit by making affordable, long-term mortgages available to Nigerians. The fund, which will initially focus on N250 billion, will support the construction of housing units and promote private sector participation in the housing industry.
The initiative is expected to reduce mortgage rates, extend loan tenures, and stimulate job creation while encouraging private investment. Through this fund, Nigerians will gain access to long-term mortgages with interest rates significantly lower than the current market rates, offering relief and promoting economic growth.
