Finance Minister Explains FEC’s Approval of New $2.2 Billion Borrowing Plan for Nigeria
The Minister of Finance, Wale Edun, has explained the rationale behind the Federal Executive Council’s (FEC) approval of a new $2.2 billion borrowing plan. According to Edun, the plan is designed to give Nigeria access to the international capital market through a mix of Eurobond and SUKUK financing.
Speaking to journalists at the Presidential Villa on Thursday, Edun detailed that the borrowing plan comprises $1.7 billion in Eurobond financing and $500 million through SUKUK bonds. He emphasized that, if approved by the National Assembly, this funding will help strengthen Nigeria’s financial sector and support ongoing economic reforms.
In his words, “The objective is to complete the federal government’s external borrowing program by securing $2.2 billion in financing. This includes access to the international capital market through a combination of Eurobond and SUKUK bond offerings.”
He further highlighted that Nigeria’s ability to access international capital markets reflects global confidence in President Bola Ahmed Tinubu’s economic reforms.
“Securing funding from international investors signals their acceptance and support for the administration’s macroeconomic policies. The government’s economic recovery and reform agenda is centered on market-driven pricing for petroleum products and foreign exchange, both critical pillars for stabilizing the economy,” he added.
This development comes amid rising external borrowing, which reached $4.89 billion as of June 2024, according to data from the Debt Management Office.
Source: Daily Post
