The Federal Executive Council (FEC) has officially approved a $2.2 billion external borrowing plan, which includes potential offers of a Eurobond and Sukuk bond. This financing move, aimed at boosting Nigeria’s economic recovery, was announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, following the FEC meeting held at the Presidential Villa in Abuja on Wednesday.

Mr. Edun shared the details of the approval, highlighting the decision to access international capital markets through a combination of Eurobond and Sukuk bond issuances. The Eurobond is expected to raise approximately $1.7 billion, while the Sukuk bond will account for $500 million of the total financing. The actual breakdown of the borrowing instruments will depend on market conditions at the time, once the National Assembly reviews and hopefully approves the borrowing plan.

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“This approval is a crucial step for completing the federal government’s external borrowing program,” said Edun. “We aim to finalize the borrowing process within this year, contingent on legislative approval.”

The Finance Minister also emphasized that Nigeria’s ability to tap into the international capital markets signals a strong vote of confidence in the country’s macroeconomic policies under President Bola Tinubu’s administration. Earlier in the year, the country successfully issued domestic dollar bonds, attracting investors from both within and outside Nigeria, showcasing the resilience and growing sophistication of the Nigerian financial market.

In addition to the borrowing plan, the FEC also approved the establishment of the Morph Real Estate Investment Fund, a N250 billion initiative aimed at addressing the country’s housing deficit. The fund will provide affordable, long-term mortgages to Nigerians looking to acquire homes, contributing to efforts to reduce the nation’s 22 million housing gap. It is also expected to create jobs and stimulate overall economic growth by attracting private sector investment into Nigeria’s housing industry.

“This is a vital move to revive the long-term mortgage financing sector and support housing construction, with significant economic benefits for the country,” Edun added. The fund will be seeded with N150 billion to start the process.