FEC approves $2.2 billion for external borrowing plan

The Federal Executive Council (FEC) has granted approval for a $2.2 billion financing programme to support the Federal Government’s external borrowing plan.
The decision was disclosed by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, following a briefing after Wednesday’s FEC meeting in Abuja.
Edun emphasized the significance of this approval as a critical part of the federal government’s borrowing strategy to meet financial needs and support its economic recovery efforts.
The proposed financing package will include access to the international capital market, specifically targeting the issuance of Eurobonds and Sukuk bonds.
The Minister explained that the next step involves submitting the borrowing plan to the National Assembly for approval, after which the external borrowing will be finalized.
Edun confirmed that once approved, the borrowing will be executed as soon as possible, likely within this year.
The composition of the financing instruments will depend on prevailing market conditions and the advice from financial advisors at the time of the decision.
He explained that the actual combination of instruments that would be raised would depend on what the advisors would say about market conditions at the time of the decision to enter the market
The Minister also reflected on the resilience of the Nigerian financial markets, particularly the success of the recent domestic issuance of dollar bonds, which demonstrated the market’s capacity and sophistication.
He highlighted this as a positive sign of confidence in Nigeria’s macroeconomic policies under the leadership of President Bola Tinubu.
Likewise, being able to access the international capital market is also a sign of the acceptance and the support for the macroeconomic programmes of President Bola Tinubu-led administration,” he said.

source: nairametrics.com

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