Nigeria to raise $500 Million through domestic FX-denominated bonds from next month

The federal government has announced plans to issue $500 million in domestic foreign currency-denominated bonds by August this year.

Wale Edun, Minister of Finance and Coordinating Minister of the Economy, disclosed this during a quarterly press briefing held in Abuja earlier today, July 25.

The meeting, themed ‘Economic Recovery and Growth: Progress and Prospects 2024’ provided an update on the Federal government’s strategy for the second half of the year and the focus on attracting savings from Nigerians abroad and in diaspora.

This move aims to tap into foreign currency reserves held by Nigerians overseas and attract global investors supportive of the Federal Government’s macroeconomic reforms.

“The issuance is a challenge to financial markets to participate and marks a step towards greater economic autonomy,” Edun added, noting the bonds’ imminent availability within the next three to four weeks.

Federal government does not plan to issue eurobonds

Regarding plans for eurobond issuance, Edun clarified that there are currently no immediate intentions to pursue this avenue. “Our focus now is on the success of the domestic foreign currency-denominated bonds. Depending on their outcome, we will consider future international market options,” he affirmed.

Previously, reports suggested Nigeria had engaged investment banks like Citibank NA, JPMorgan Chase & Co., and Goldman Sachs for Eurobond advice. However, the Debt Management Office (DMO) denied formal approval for transaction advisers or Eurobond issuance.

Edun expressed confidence in Nigeria’s economic trajectory, asserting, “We are on the right path towards growth and prosperity with these strategic initiatives.”

The announcement aligns the Federal Government’s commitment to financial independence and domestic investment while navigating global economic challenges and capitalizing on domestic savings and investor confidence.