Why FEC approved fresh $2.2bn borrowing plan for Nigeria – Finance Minister, Edun

The Minister of Finance, Wale Edun, has explained that the Federal Executive Council approved a fresh $2.2 billion borrowing plan for Nigeria to enable the country’s access to the international capital market for a combination of the Euro bond and SUKUK financing.

Edun disclosed this on Thursday, while briefing journalists at the Presidential Villa.

According to him, the fresh borrowing plan of $2.2 billion is made up of $1.7 billion and SUKUK financing of $500 million, aimed at strengthening the country’s finances and boosting economic reforms.

The Minister noted that if approved by the National Assembly, the borrowing plan will strengthen the country’s financial market.

“The first one was to complete the borrowing programmeme of the federal government in terms of the external borrowing with the approval of the $2.2 billion financing programmeme made up of access to the international capital market for some combination of the Eurobond offer and the Sukuk bond offer.”

He added that Nigeria being able to access the international capital market is a sign of acceptance and support for President Bola Ahmed Tinubu’s economic reforms.

“Being able to access the international capital market is also a sign of the acceptance and the support for the macroeconomic programme of Mr President and indeed his entire administration, as we know that economic programme, that economic recovery and revival programmeme to turn around the economy, is focused on macroeconomics—the macroeconomic pillars of market pricing of the PMs and market pricing of foreign exchange.”

This comes as Nigeria’s external borrowing continues to surge in the months to $4.89 billion as of June 2024, according to Debt Management Office data.

Why FEC approved fresh $2.2bn borrowing plan for Nigeria – Finance Minister, Edun