The Federal Government has announced a $2.2 billion external borrowing program alongside a strategic housing development initiative, marking significant moves in Nigeria’s economic management strategy.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed these plans following Wednesday’s Federal Executive Council (FEC) meeting at the Presidential Villa, Abuja.
“We just had the Federal Executive Council meeting, and I am privileged to present two memoranda to the Federal Executive Council,” Edun stated, outlining the government’s financial strategies.
The minister detailed the external borrowing framework: “The first one was to complete the borrowing programme of the federal government in terms of external borrowing with the approval of a $2.2 billion financing programme.”
Breaking down the financing structure, Edun explained: “It is made up of access to the international capital market for some combination of the Euro bond offer and the Sukuk bond offer, and perhaps a Euro bond of about $1.7 billion. Sukuk financing of another $500 million the actual makeup of the financing which will be done as soon as the National Assembly has considered and hopefully approve the borrowing plan.”
The implementation timeline remains contingent on parliamentary approval, with the minister noting: “If the external borrowing approval is given, it will be done this year, as soon as possible after approval.”
Highlighting Nigeria’s financial market resilience, Edun referenced earlier successful domestic dollar bond issuances:
“Of course, earlier in the year, we had shown the resilience of the Nigerian financial markets, and the depth of their capacity, the increased complexity and sophistication by having a domestic issuance of dollar bonds, which attracted Nigerian investors from far and wide.”
In a parallel development, the FEC approved the Ministry of Finance’s incorporated real estate investment fund, introducing a N250 billion initiative aimed at addressing Nigeria’s housing deficit.
“The Morph Real Estate Investment Fund is going to be, in the first instance, a N250 billion fund that will provide low-cost and long-term mortgages to Nigerians that want to acquire houses,” Edun explained, adding that it would help address “part of the gaping 22 million unit housing deficit.”
The housing initiative includes seed funding of N150 billion and aims to stimulate economic growth through job creation and increased construction activity. “It will also pave the way for other investors in the private sector to come in and participate in the all-important housing construction industry with huge benefits and knock-on effects throughout the whole economy,” the minister stated.
