The federal government has announced plans to issue $500 million in domestic foreign currency-denominated bonds in August.
Wale Edun, the minister of finance and coordinating minister of the economy, made this announcement during a quarterly press briefing in Abuja on Thursday, where he reviewed the first half of 2024. The event was themed ‘Economic Recovery and Growth: Progress and Prospects 2024’.
Back in April, Edun had indicated that these bonds would be issued in the second quarter of the year.
Updating attendees on Thursday, Edun emphasized the importance of attracting savings held abroad by Nigerians.
“We have an open exchange rate system, which is legal, and thus we are issuing dollar-denominated securities without relying on the financial structures of the western world,” he explained. “We’re utilizing the Nigerian financial system, including the Securities and Exchange Commission (SEC), the banking sector, and investment bankers to issue the initial $500 million. This will appeal to Nigerians abroad and others who support President Bola Tinubu’s macroeconomic reforms.”
He challenged the financial markets to engage with this initiative, which is set to open within the next three to four weeks.
‘NO PLANS TO RAISE EUROBOND’
Edun clarified that there are no current plans to raise eurobonds, and that future decisions will depend on the success of the domestic foreign currency-denominated bonds.
“Presently, we are not considering going to international markets to raise eurobonds,” Edun stated. “It remains an option, and the market is available to us based on our ratings and performance. However, we prefer to encourage Nigerians to invest their money domestically and participate in Nigeria’s economic reform journey.”
He added that the economy is poised for growth and success under the federal government’s current strategies.
On March 13, it was reported that Nigeria had engaged investment banks like Citibank NA, JPMorgan Chase & Co., and Goldman Sachs for advice on its first eurobond issue since 2022. However, two days later, the Debt Management Office (DMO) denied receiving approval for appointing transaction advisers or for the eurobond issuance.
