FEC approves $2.2 billion borrowing plan to support economic reforms

The Federal Executive Council (FEC) has approved an external borrowing plan of $2.2 billion aimed at boosting the nation’s finances and supporting ongoing economic reforms.

Finance Minister Wale Edun shared this update with State House correspondents on Thursday after the FEC meeting, which was led by President Bola Tinubu at the Presidential Villa.

According to him, “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 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.”

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