The Federal Executive Council (FEC) has approved a $2.2 billion external borrowing package to bolster Nigeria’s finances and support economic reforms. The decision, announced by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, came after a council meeting on Thursday chaired by President Bola Tinubu.

The borrowing, set to be a mix of $1.7 billion in eurobonds and $500 million in sukuk bonds, is aimed at advancing Nigeria’s external borrowing strategy. Edun explained that the structure will be shaped by market conditions and expert advice, with the funds expected to be raised within the current fiscal year, pending National Assembly approval.

“The primary goal is to fulfill the federal government’s external borrowing plan through a $2.2 billion financing package,” Edun stated, highlighting that recent economic reforms, such as foreign exchange adjustments, have enhanced Nigeria’s standing in global capital markets. He pointed to a recent domestic dollar bond issuance that attracted both local and international investors as evidence of improved investor confidence.

Alongside the borrowing initiative, FEC also approved a N250 billion real estate investment fund aimed at alleviating Nigeria’s housing deficit. Managed by the Ministry of Finance Incorporated (MOFI), the fund is designed to offer long-term, affordable mortgages, addressing the country’s 22 million-unit housing shortfall.

“The MOFI real estate fund, starting with N150 billion, will provide low-cost mortgages with tenures up to 20 years, offering Nigerians access to homeownership at rates far below the market average of 30%,” Edun said. The initiative is expected to create jobs, stimulate growth, and encourage private sector participation in housing, delivering significant economic and social benefits.