The Federal Executive Council has approved a new borrowing plan of $2.2 billion to help boost Nigeria’s economy and finance key reforms.
This plan includes $1.7 billion from a Eurobond and $500 million from Sukuk financing, as explained by the Minister of Finance, Wale Edun, after a Thursday meeting led by President Bola Tinubu.
Minister Edun noted that the borrowing plan would go to the National Assembly for approval. “The first part is to access the international capital market with a Eurobond of about $1.7 billion, along with $500 million in Sukuk financing,” Edun stated, adding that the funds would be used to complete the government’s external borrowing program.
Edun further emphasized the importance of Nigeria being able to borrow internationally, calling it a positive sign. “Being able to access the international market shows support for the economic programs of President Tinubu and his administration. The borrowing is part of a plan to turn around the economy, focusing on stable prices for fuel and foreign exchange,” he said.
In addition to the borrowing plan, the FEC also approved a N250 billion real estate fund. This fund, called the Ministry of Finance Incorporated Real Estate Investment Fund, aims to provide affordable housing and mortgages for Nigerians.
The fund’s goal is to help close the housing gap by offering long-term loans with lower interest rates, between 11% and 12%, which is far below the current market rate of over 30%.
“This new fund will allow Nigerians to access low-cost mortgages with repayment periods of up to 20 years,” Edun explained, adding that the initiative would also create jobs and encourage private investment in the housing sector.
