Nigeria’s Federal Executive Council (FEC) has approved a $2.2 billion financing program for external borrowing, which includes potential offerings of a Eurobond and Sukuk bond, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced on Wednesday.
The approved financing package is aimed at completing the country’s external borrowing program, with the possibility of issuing $1.7 billion in Eurobonds and $500 million in Sukuk bonds.
The final structure of the financing will depend on market conditions and advice from financial advisors, Edun explained, adding that the program would proceed once the National Assembly reviews and approves the borrowing plan. If approval is granted, the borrowing could take place before the end of the year.
Edun emphasized the resilience of Nigeria’s financial markets, citing the successful issuance of domestic dollar bonds earlier in the year, which demonstrated the capacity and sophistication of local investors.
The move to access international capital markets is seen as a sign of confidence in the economic policies of President Bola Tinubu’s administration, he added.
The Minister also highlighted another key approval from the FEC: the establishment of the Morph Real Estate Investment Fund, which aims to tackle Nigeria’s 22 million housing deficit.
The fund, initially set at N250 billion ($327 million), will provide low-cost, long-term mortgages to Nigerians, supporting both housing development and job creation. The initiative is expected to attract private sector investment and stimulate broader economic growth.
“The fund will also be blended with seed funding of N150 billion, creating opportunities for long-term investors to earn market rates of interest while addressing the critical housing shortage,” Edun said.