Nigerian Government Announces 500 Million dollars Domestic, Dollar Denominated Bond Issuance

The Nigerian government plans to issue $500 million in domestic, dollar-denominated bonds within the next three to four weeks, according to Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. Edun made this announcement during a quarterly press briefing in Abuja titled ‘Economic Recovery and Growth: Progress and Prospects 2024’.

Edun emphasized that the issuance will utilize the Nigerian financial system, including the Securities and Exchange Commission (SEC), banks, and investment bankers, rather than relying on Western financial structures used for Eurobonds. This $500 million issuance aims to attract foreign currency held by Nigerians abroad and other investors supportive of President Bola Tinubu's macroeconomic reforms.

Edun also noted that the government currently has no plans to issue Eurobonds, with the decision hinging on the success of the domestic bond issuance. He encouraged Nigerians to invest in their country's economic reforms, expressing confidence in the nation's positive economic direction despite it being early days.

Previously, it was reported that the government intended to start issuing these bonds in the second quarter of the year. The delay was attributed to the government's efforts to build trust in its fiscal policies. However, the International Monetary Fund (IMF) has raised concerns about this strategy, warning that it could increase pressures on the naira and the costs associated with naira securities, potentially fragmenting the market.

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