Nigeria plans to tap international capital markets with a $1.7 billion Eurobond issuance, as Finance Minister Wale Edun unveils the move to drive economic reforms and strengthen the country’s finances.

At Nigeria’s Presidential Villa, the Minister of Finance, Wale Edun, announced plans for the federal government to issue $1.7 billion in Eurobonds.

Speaking to journalists after Thursday’s Federal Executive Council (FEC) meeting, which President Bola Tinubu chaired, Edun outlined the move as part of a broader external borrowing strategy aimed at supporting essential economic reforms.

The First Objective

“The first objective,” Edun explained, “is to complete the federal government’s external borrowing programme.”

To achieve this, the government will raise a total of $2.2 billion through a combination of Eurobonds and Sukuk bonds.

Specifically, approximately $1.7 billion will come from the Eurobond offer, while an additional $500 million will be secured through Sukuk financing.

Furthermore, Edun emphasised that the programme will only proceed once it has secured approval from the National Assembly.

In the meantime, fortunately, the timing appears to be favourable.

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With recent interest rate cuts in the United States—now at 4.5-4.75 per cent—Nigeria is benefitting from significantly improved borrowing conditions.

Moreover, Edun confirmed that the government plans to carry out the borrowing within the 2024 fiscal year.

“The final structure,” he noted, “will depend on market conditions and recommendations from our transaction advisers.”

Ultimately, this carefully considered strategy effectively combines international capital markets with Islamic financing mechanisms, thus reflecting the government’s commitment to stabilising the economy and driving forward critical reforms.

In addition, this initiative represents a crucial step towards securing the nation’s long-term financial future.

At the heart of this announcement lies the hope that these funds will provide Nigeria with the necessary resources to navigate its economic challenges effectively and achieve sustainable growth in the years ahead.