Nigeria is set to raise $2.2 billion from international debt markets this year to fund ongoing economic reforms, after successfully issuing dollar bonds on its local market two months ago, according to the country’s finance minister.
Wale Edun, who also serves as the economic coordinator, announced in Abuja on Thursday that the country intends to secure $1.7 billion through Eurobonds and an additional $500 million via sukuk. The funds will be raised following approval from parliament, with the exact mix of debt instruments depending on advice from financial experts and market conditions. These funds will be utilized to support Nigeria’s economic reforms, Edun said.
President Bola Tinubu’s government has implemented significant changes since last year, including removing a fuel subsidy that had kept petrol prices low and liberalizing the foreign exchange market in an effort to stimulate growth. However, these measures have contributed to rising inflation.
In related updates, Budget Minister Atiku Bagudu confirmed that Nigeria’s 2025 budget will allocate 47 trillion naira ($28.2 billion) in expenditure, with a projected shortfall of 13.8 trillion naira to be covered by borrowing. Bagudu also revealed a forecasted exchange rate of 1,400 naira to the U.S. dollar for 2025, an improvement over the official rate of 1,655 naira as of Thursday.
Bagudu assured that the government’s fiscal strategy was progressing well, with key non-oil revenue sources exceeding expectations.
