The Nigerian government has approved a $2.2 billion external borrowing plan to strengthen its finances and support ongoing economic reforms. The financing package will be raised through Eurobonds and Sukuk bonds, with approximately $1.7 billion expected to come from Eurobonds and $500 million from Sukuk.
Finance Minister Wale Edun shared the news after the Federal Executive Council (FEC) meeting, which was chaired by President Bola Tinubu. He explained that the borrowing program is designed to complete the government’s financing needs for the year. However, the plan will be finalized once it passes through the National Assembly’s review and approval.
“The primary objective is to complete the federal government’s external borrowing program,” Edun said. “We plan to raise the funds within this fiscal year, and the final structure will depend on market conditions and the recommendations of transaction advisers.”
Edun also highlighted the success of Nigeria’s financial markets, which recently demonstrated their resilience by attracting both local and international investors during domestic dollar bond issuances. These moves have reinforced the market’s capacity to handle more sophisticated financial offerings.
The borrowing plan is part of broader economic reforms under President Tinubu’s administration, which includes market-based pricing for key economic variables like petroleum products and foreign exchange.
N250 Billion Real Estate Investment Fund Approved
In addition to the borrowing plan, the FEC also approved the creation of a N250 billion real estate investment fund. This fund will tackle Nigeria’s housing deficit and provide affordable mortgage financing for Nigerians.
Edun explained that the fund will help address the 22 million-unit housing deficit and offer mortgages at much lower interest rates than the current market rates, which often exceed 30%. The initiative aims to provide long-term financing options with tenures of up to 20 years.
“The real estate investment fund will be a key driver in reviving long-term mortgage financing in Nigeria,” Edun said. “It will create jobs, stimulate economic growth, and attract private sector investors into the housing sector, benefiting the broader economy.”
The N250 billion fund will be seeded with N150 billion and is expected to provide significant returns for investors, contributing to Nigeria’s economic development in the long run.
