The Federal Executive Council (FEC) has approved a $2.2 billion financing programme to bolster Nigeria’s external borrowing strategy, aimed at meeting the government’s financial needs and driving economic recovery efforts.
The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, after the FEC meeting in Abuja on Wednesday.
Funding breakdown: Eurobonds and Sukuk Bonds
The financing plan includes raising funds from the international capital market through a combination of Eurobonds and Sukuk bonds. According to Edun, the proposal outlines issuing approximately $1.7 billion in Eurobonds and $500 million in Sukuk financing.
“The actual composition of the financing will depend on market conditions and advice from financial experts when we enter the market. However, this plan reflects the government’s commitment to fulfilling its borrowing needs responsibly,” Edun stated.
The borrowing programme will proceed once it receives approval from the National Assembly, with Edun indicating that the government intends to finalize the process within the year.
Strengthening financial markets
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The Minister highlighted the resilience of Nigeria’s financial markets, citing the successful issuance of domestic dollar bonds earlier this year as evidence of investor confidence in the country’s macroeconomic policies under President Bola Tinubu’s administration.
“Nigeria’s financial markets have demonstrated depth and sophistication. The acceptance of our domestic dollar bonds and anticipated access to the international capital market underscore the confidence in our economic policies,” Edun added.
Addressing Nigeria’s housing deficit
In addition to the borrowing plan, the FEC approved the establishment of the Morph Real Estate Investment Fund, designed to address Nigeria’s significant housing deficit, estimated at 22 million units.
The fund, initially set at ₦250 billion, will provide low-cost, long-term mortgages to Nigerians and encourage private-sector participation in housing construction.
“This initiative will revitalize the housing sector, create jobs, and stimulate economic growth. It’s a step toward reducing the housing deficit while opening opportunities for long-term investors to earn market rates on their investments,” Edun explained.
The Morph Fund will blend ₦150 billion in seed funding with private investments to drive affordable housing projects across the country.
Broader economic implications
Both initiatives reflect the government’s efforts to stabilize the economy, support key sectors, and foster growth. With plans to leverage international and domestic financing tools, Nigeria is positioning itself to tackle pressing economic challenges while creating opportunities for its citizens.
“These actions align with our broader goals of economic recovery and sustainable development,” Edun concluded.
