The Nigerian government is set to issue $500 million in domestic foreign currency-denominated bonds in August, according to Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The move is aimed at attracting savings held by Nigerians abroad and encouraging foreign investment in the country.
Speaking during a quarterly press briefing in Abuja, Edun emphasized that the decision is not dependent on the financial architecture of the western world, but rather on Nigeria’s own financial system. “We’re using the Nigerian financial system, the Securities and Exchange Commission (SEC), the banking system, and investment bankers to issue these bonds,” he said.
The minister also clarified that there are no plans to raise eurobonds at present, stating that any such move would depend on the success of the domestic foreign currency-denominated bonds. “Right now, depending on the success of that issue, there is no talk of looking to go to the international markets to raise a euro bond,” Edun said.
Edun expressed confidence in Nigeria’s economic prospects, citing the country’s improved ratings and performance. “The market is open to us, but we prefer in the first instance to challenge Nigerians to come home with their money and be part of the Nigerian reform success story that we believe is where the economy is headed,” he said.
The government has hired investment banks including Citibank NA, JPMorgan Chase & Co., and Goldman Sachs to seek advice on its first eurobond issue since 2022. However, the Debt Management Office (DMO) have denied receiving approval for the appointment of eurobond issuance and transaction advisers.
The minister’s remarks were made during a meeting themed “Economic Recovery And Growth: Progress and Prospects 2024”, which aimed to review Nigeria’s economic progress in the first half of 2024. Edun expressed optimism about Nigeria’s economic future, stating that the country is set for growth and success with its current plans in place.
Join our Channel...