Economy
Nigeria Abandons $2.36bn External Loan for N850bn Local Borrowing
By Modupe Gbadeyanka
Plans to borrow about $2.36 billion from external sources have been abandoned by the Nigerian government.
Instead, federal government has concluded plans to look inward and raise the equivalent amount in local currency, N850 billion.
This would be done mostly through the issuance of treasury bills and bonds.
Business Post reliably gathered that already, the Debt Management Office (DMO) has been directed to come up with ways to go about this.
Proceeds from the local borrowing through the capital market would be used to finance projects in the 2020 Appropriation Bill, which was signed into law in December 2019 by President Muhammadu Buhari.
In the 2020 budget worth about N10 trillion, federal government said it would borrow N795 billion from the local debt market and $2.36 billion (about N850 billion) from the international market.
The N795 billion domestic loan was structured between T-bills and bonds, while efforts were being made to take the $2.36 billion equivalent to the Eurobond market.
However, the coronavirus pandemic rendered that plan useless, resulting into the sourcing for the funds from investors in Nigeria.
On Tuesday, the Senate resumed from the 5-week break it was forced into due to the global health situation. At the plenary, the red chamber of the parliament approved the request of President Buhari to convert the $2.36 billion external borrowing to N850 billion local loan.
In a statement on Tuesday, the DMO noted that, “With this change, the total new domestic borrowing under the 2020 Appropriation becomes N1,594.99 billion which is the same as the total new borrowing in the 2020 Appropriation Act.”
The agency said it expects the House of Representatives to approve the loan request like the Senate, noting that when this is done, it “will issue FGN Securities in the domestic market to raise the N850 billion, thereby providing high-quality investment opportunities for the investing public.”
Analysts at Business Post said the local borrowing should be a blessing to resident investors as the interest rates for the debt instruments should be marginally raised.
“We are of the opinion that the conversion of the $2.36 billion external loan to N850 billion local borrowing will result in the rates going up, though slightly, to attract investors.
“This anticipated hike in interest rates will be buoyed by the present global health crisis, which has made investors to hold their cash.
“In order to get this money from them, government will want to lure them with attractive rates, slightly better than the less than 2 percent in the treasury bills market at the moment,” analysts at Business Post submitted.
By Aduragbemi Omiyale
The pre-registration training and examination for capital market operators (CMOs) for the second quarter of 2026 has been postponed.
Business Post gathered that the new date for the exercise is now Monday, June 15, 2026.
This information was disclosed by the Securities and Exchange Commission (SEC) through a circular on Monday, June 8, 2026.
The Nigerian capital market regulator stated that this postponement has also resulted in the extension of the deadline for registration to Friday, June 12, 2026.
In the notice today, the SEC expressed its regret for the inconvenience this action may cause operators, who had prepared for the initial date of the training and examination.
“Further to the recent circular on Q2 2026 Pre-registration Training and Examination, the Securities and Exchange Commission (SEC) hereby informs all eligible applicants for the Q2 2026 Pre-registration Training and Examination that the commencement date has been postponed to Monday, June 15, 2026.
“Registration on the designated portal has also been extended to Friday, June 12, 2026. All other conditions contained in the circular remain unchanged.
“The commission regrets any inconvenience this postponement may cause and appreciates the understanding of all applicants,” the disclosure noted.
By Aduragbemi Omiyale
One of the leading healthcare firms in Nigeria, Fidson Healthcare Plc, has listed additional shares on the Nigerian Exchange (NGX) Limited.
The new stocks absorbed into the stock market were 600 million units, raising the total issued and fully paid-up shares of Fidson to 3,000,000,000 ordinary shares of 50 Kobo each from 2,400,000,000 ordinary shares of 50 Kobo each.
The fresh equities came from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share.
They were issued to existing investors on the basis of one new ordinary share for every existing four ordinary shares held as of the close of business on Wednesday, November 12, 2025.
Confirming the development, the regulator in a notice said, “Trading licence holders are hereby notified that an additional 600,000,000 ordinary shares of 50 Kobo each of Fidson Healthcare Plc were on Tuesday, June 2, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares arose from the company’s rights issue of 600,000,000 ordinary shares of 50 Kobo each at N35.00 per share on the basis of one new ordinary share for every existing four ordinary shares held as at the close of business on Wednesday, November 12, 2025.
“With the listing of the additional 600,000,000 ordinary shares, the total issued and fully paid-up shares of Fidson Healthcare Plc have now increased from 2,400,000,000 to 3,000,000,000 ordinary shares of 50 Kobo each.”
By Modupe Gbadeyanka
This news will surely excite local contractors with verified claims of N100 million or less, as the federal government has approved their payments.
This approval for the disbursement was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
This followed a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
The beneficiaries cover contractors across multiple ministries, departments and agencies. The release of the funds is expected to enable contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
In an announcement on Monday, the Federal Ministry of Finance also said this latest batch of payments would ease liquidity pressure on small businesses and accelerate economic activity nationwide.
It was noted that the payments for verified claims of N100 million below were strategically done to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
The payments form part of a broader push to clear inherited contractor obligations, with over N700 billion verified in recent months.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the ministry said in a statement.
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