A $2.2 billion financing scheme for external borrowing, which includes a possible issue of Eurobond and Sukuk bonds, has been approved by the Federal Executive Council (FEC). This was disclosed to reporters following the FEC meeting on Wednesday at the Presidential Villa in Abuja by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. “I have the honor of presenting two memoranda to the Federal Executive Council, which just concluded its meeting.”
The first was the completion of the Federal Government’s external borrowing program with the approval of a financing program worth $2.2 billion. It consists of maybe a Euro bond for roughly $1.7 billion as well as access to the global capital market for a mix of the Euro bond and Sukuk bond offers.
The real financing will consist of an additional $500 million in sukuk financing, which will be completed as soon as the National Assembly has reviewed and, ideally, approved the borrowing plan. “It will be completed this year, as soon as possible after approval, if the external borrowing is approved.”
He clarified that the advisors’ opinions of the state of the market at the time of the decision to enter the market would determine the precise mix of instruments that would be raised. 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.
Read Also: Human rights advocate urges elder statesmen, clerics to engage Pres. Tinubu over the state of the nation
“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 will initially be a N250 billion fund that will offer long-term, affordable mortgages to Nigerians who wish to buy homes.” It will contribute to closing or partially filling the staggering housing deficit of 22 million units.
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.Market rates of interest on investment are available to long-term investors. “This will be combined with N150 billion in seed funding,” he stated.
