FEC approves $2.2b borrowing plan to support economic reforms

The Federal Executive Council (FEC) has approved an external borrowing plan of $2.2 billion aimed at boosting the nation’s finances and supporting ongoing economic reforms.

On Thursday, Finance Minister Wale Edun update the State House correspondence after the meeting of the Federal Executive Council, commonly known as FEC. During this meeting, various key issues were discussed that relate to the financial state of the country, and Minister Edun took the time to explain the outcomes and decisions that were made to the reporters who were present. This update is vital as it helps the public understand the government’s plans and actions regarding financial matters.

According to him the first goal that has been set is to successfully finish the external borrowing program initiated by the Federal Government. This program includes obtaining approval for a substantial financing package amounting to $2.2 billion. This financing will allow the country to access international capital markets by utilizing two specific types of financial instruments known as Eurobonds and Sukuk bonds. More specifically, approximately $1.7 billion is expected to come from the Eurobond offering while around $500 million will be generated through Sukuk financing.

It is important to note that the precise details regarding the composition of this financing plan will not be determined until the National Assembly has had the opportunity to thoroughly review and formally approve the borrowing strategy. Once the necessary approval for external borrowing is granted by the appropriate authorities, the government aims to raise the required funds as quickly as possible, ideally within the current calendar year. Furthermore the specific mix of financial instruments that will be used for this borrowing will be influenced by the guidance provided by transaction advisers and will also consider the current market conditions at the point when the decision is made to go into the market for these financial instruments.