An external borrowing program of $2.2 billion, which includes the possibility of offering Eurobonds and Sukuk bonds, has been approved by the Federal Executive Council (FEC).
Following the FEC meeting on Wednesday at the Presidential Villa in Abuja, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, informed reporters of this.
In the recent Federal Executive Council meeting, I had the honor of introducing two memoranda to the group.
The first was to obtain clearance for a $2.2 billion financing scheme in order to finish the Federal Government’s external borrowing program.
“It consists of access to the global capital market for a Euro bond of roughly $1.7 billion, as well as some mix of the Sukuk and Euro bond offers.
After the National Assembly has reviewed and, ideally, authorized the borrowing plan, the actual funding will be completed with sukuk financing of an additional $500 million.
“If approved, external borrowing will be completed this year, as soon as possible after approval.”
“What the advisors would say about market conditions at the time of the decision to enter the market would determine the actual combination of instruments that would be raised,” he stated.
Naturally, by issuing dollar bonds domestically earlier in the year, we demonstrated the strength of the Nigerian financial markets, their depth of capability, and their enhanced complexity and sophistication, drawing in Nigerian investors from all over the country.
“Similarly, having access to the global capital market is a sign of support and acceptance for the macroeconomic policies of the administration led by President Bola Tinubu,” he said.
The macroeconomic pillars of foreign exchange and PMS market pricing were the main focus of the economic recovery and resurrection agenda, according to the minister. Additionally, he revealed that the Ministry of Finance’s established real estate investment fund had received approval from the FEC.
He asserts that the fund serves as the foundation for the Nigerian economy’s recovery and the reintroduction of long-term mortgage borrowing.
“The Morph Real Estate Investment Fund would initially be a ₦250 billion fund that will offer long-term, affordable mortgages to Nigerians who wish to own homes.
“It will contribute to solving the staggering 22 million unit housing deficit or at least partially filling it. It will, of course, boost economic growth and provide jobs.
Additionally, it will open the door for additional private sector investors to enter and take part in the crucial home building sector, which will have enormous advantages and ripple effects across the entire economy.
The chance to earn market interest rates on investments is available to long-term investors.
“This will be combined with ₦150 billion in seed funding,” he said.
