The federal executive council (FEC) has approved a $2.2 billion external borrowing plan to strengthen the country’s finances and support economic reforms.
Wale Edun, the minister of finance and coordinating minister of the economy, spoke to journalists at the end of the FEC meeting on Thursday, presided over by President Bola Tinubu.
The minister said the financing package will be raised through a combination of eurobonds and sukuk.
He said approximately $1.7 billion is expected from the eurobond offer and $500 million from the sukuk financing.
The minister disclosed that the borrowing would happen this fiscal year, stressing that the ultimate funding arrangement would be decided by market conditions and the transaction adviser’s counsel.
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“The first objective is to complete the federal government’s external borrowing programme with the approval of the $2.2 billion financing package, which will include access to the international capital market through a combination of Eurobonds and Sukuk bonds —approximately $1.7 billion from the Eurobond offer and $500 million from Sukuk financing,” Edun said.
“The actual composition of the financing will be finalised once the national assembly has considered and approved the borrowing plan.
“After the external borrowing approval is granted, the funds will be raised as soon as possible within the year.
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