Why FEC Approved Fresh $2.2bn Borrowing Plan for Nigeria – Finance Minister Edun

The Minister of Finance, Wale Edun, has revealed that the Federal Executive Council (FEC) has approved a new $2.2 billion borrowing plan to enable Nigeria to access international capital markets through a combination of Eurobonds and SUKUK financing.

Speaking to journalists at the Presidential Villa on Thursday, Edun explained that the borrowing package includes $1.7 billion in Eurobonds and $500 million in SUKUK financing.

The funds are intended to bolster the country’s financial position and support economic reforms.

Edun emphasized that the plan, if approved by the National Assembly, would help strengthen Nigeria’s financial market and stimulate economic growth.

“The first one was to complete the borrowing programmeme of the federal government in terms of the external borrowing with the approval of the $2.2 billion financing programmeme made up of access to the international capital market for some combination of the Eurobond offer and the Sukuk bond offer.”

Edun added that Nigeria’s ability to access the international capital market reflects a vote of confidence and support for President Bola Ahmed Tinubu’s ongoing economic reforms.

“Being able to access the international capital market is also a sign of the acceptance and the support for the macroeconomic programme of Mr President and indeed his entire administration, as we know that economic programme, that economic recovery and revival programmeme to turn around the economy, is focused on macroeconomics—the macroeconomic pillars of market pricing of the PMs and market pricing of foreign exchange.”

This development coincides with the continued rise in Nigeria’s external borrowing, which reached $4.89 billion as of June 2024, according to data from the Debt Management Office.