The Federal Government has unveiled its plans to raise $500 million through the issuance of domestic foreign currency-denominated bonds in August. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this during a quarterly press briefing in Abuja on Thursday. The event, themed “Economic Recovery and Growth: Progress and Prospects 2024,” highlighted the government’s aim to attract savings from Nigerians abroad.
Emphasizing the legality of issuing dollar-denominated securities in Nigeria’s open exchange rate system, Edun stated that the bond issuance would leverage the Nigerian financial system, including the Securities and Exchange Commission (SEC), the banking sector, and investment bankers. This approach aims to tap into the foreign currency holdings of Nigerians abroad and other investors who support President Bola Tinubu’s macroeconomic reforms.
Edun expects the issuance to be available within the next three to four weeks and foresees significant challenges for the financial markets. The success of this initiative may also influence the government’s future decisions regarding euro bonds. Earlier this year, Nigeria had sought advisory services from investment banks such as Citibank NA, JPMorgan Chase & Co., and Goldman Sachs for a potential eurobond issue.
