FEC Approves President Tinubu’s $2.2 Billion External Borrowing Plan

The Federal Executive Council (FEC) has approved President Bola Tinubu’s proposal for a $2.2 billion external financing program, which may include offerings in both Eurobond and Sukuk formats.

The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, following Wednesday’s FEC meeting at the Presidential Villa in Abuja. Edun noted that this external borrowing initiative represents a key part of the administration’s financial roadmap to address immediate fiscal needs and stimulate the national economy.

Details of the Financing Plan

According to Minister Edun, the financing package will seek approximately $1.7 billion from the Eurobond market, with an additional $500 million likely sourced through Sukuk bonds, subject to approval from the National Assembly. The precise mix of instruments will be determined based on market conditions and financial advisement.

“If the external borrowing approval is granted, we expect to enter the market before year’s end,” Edun confirmed, emphasizing that the timing will be informed by market advice to optimize Nigeria’s access to international capital.

The financing effort is part of a larger economic recovery plan centered on improving Nigeria’s macroeconomic stability, including implementing reforms in fuel pricing and foreign exchange. The administration aims to boost market confidence in Nigeria’s economy, further demonstrated by a recent successful issuance of dollar-denominated bonds domestically.

Incorporated Real Estate Investment Fund Approved

Additionally, the FEC greenlit a Ministry of Finance initiative to create an incorporated real estate investment fund, which seeks to address Nigeria’s housing deficit and expand mortgage financing options. Named the Morph Real Estate Investment Fund, the project will launch with an initial N250 billion fund to provide affordable, long-term mortgages, thereby supporting housing access and stimulating construction sector growth.

This program aims to bridge part of the country’s 22 million housing unit deficit and provide new jobs. The fund, backed by N150 billion in seed funding, is intended to attract long-term private investors by offering market-rate returns.

“This initiative will encourage private sector participation in the housing industry, which promises broad economic benefits,” Edun noted, underscoring its role in the Tinubu administration’s broader economic strategy to drive job creation and economic stability.