Breaking: Federal Executive Council Approves $2.2 Billion External Loan Proposal – Edun

The Federal Executive Council (FEC) has given the green light for a $2.2 billion external financing plan, potentially involving the issuance of Eurobonds and Sukuk bonds. This announcement was made by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, following the FEC meeting held at the Presidential Villa in Abuja....(CONTINUE READING)

Edun elaborated that this approval marks the final phase of the federal government’s external borrowing agenda. The financing plan includes access to international capital markets, potentially comprising a Eurobond issuance estimated at $1.7 billion and an additional $500 million from Sukuk bonds. The combination of these instruments will be determined based on market conditions, as assessed by financial advisors, once the National Assembly grants approval.

The minister emphasized the urgency of securing the National Assembly’s consent to proceed with the external borrowing within the year. He noted that earlier domestic dollar bond issuances had demonstrated the strength and sophistication of Nigeria’s financial market, which attracted widespread participation from Nigerian investors. He pointed out that accessing international capital markets would further reflect confidence in President Bola Tinubu’s macroeconomic policies.

Edun also highlighted the government’s comprehensive economic recovery program, focusing on macroeconomic stability, including market-driven pricing of fuel (PMS) and foreign exchange.

In addition, the FEC approved a new initiative under the Ministry of Finance—a real estate investment fund aimed at revitalizing the housing sector and supporting long-term mortgage financing. The Morph Real Estate Investment Fund will initially deploy N250 billion to offer affordable, long-term mortgage solutions to Nigerians seeking to own homes. This move is part of broader efforts to address the significant housing deficit of 22 million units, create jobs, and stimulate economic growth.

Edun noted that the fund would provide opportunities for private sector investment in housing construction, contributing to broader economic benefits and growth. Investors in this fund can expect competitive market returns, supported by seed funding of N150 billion to kickstart the initiative.