FEC Approves $2.2 Billion Borrowing Plan to Boost Nigeria's Economy
The Federal Executive Council (FEC) has sanctioned a $2.2 billion external financing initiative to bolster Nigeria's borrowing strategy and support economic recovery efforts. This decision was announced by Finance Minister Wale Edun following a recent FEC meeting in Abuja.
The financing plan includes issuing Eurobonds and Sukuk bonds, with a proposed allocation of approximately $1.7 billion for Eurobonds and $500 million for Sukuk bonds. The exact composition of these instruments will be determined based on prevailing market conditions and financial advisors' recommendations.
The next step involves submitting the borrowing plan to the National Assembly for approval. Once authorized, the government aims to execute the borrowing within the current year to meet its financial obligations and stimulate economic growth.
Minister Edun highlighted the resilience of Nigeria's financial markets, citing the success of recent domestic dollar bond issuances as evidence of investor confidence in the country's macroeconomic policies under President Bola Tinubu's administration.
In addition to the borrowing plan, the FEC approved the establishment of the Morph Real Estate Investment Fund, a N250 billion initiative designed to address Nigeria's housing deficit by providing low-cost, long-term mortgages. This fund is expected to stimulate the housing sector, create jobs, and encourage private-sector investment in housing construction.
These measures reflect the government's commitment to implementing strategic financial initiatives aimed at fostering economic stability and growth.