Nigeria launches $500m domestic dollar bond

The federal government, through the Debt Management Office (DMO), will be auctioning Series 1 of its first ever domestic dollar bond worth $500 million today while the National Bureau of Statistics sets to release the foreign capital importation report for Q2.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, unveiled the Series I USD500 million Domestic FGN US Dollar Bond in Lagos yesterday.

Edun further stated that the bond issuance, which is set to leverage the Nigerian financial system, including the Securities and Exchange Commission, the banking system, and investment bankers, represents a critical effort to attract foreign currency held by Nigerians abroad, as well as other international investors who believe in the macroeconomic reform initiatives spearheaded by President Bola Ahmed Tinubu.

He stated, “This historic initiative is aimed at raising a minimum of $500 million from both local and international investors, marking a significant step in Nigeria’s ongoing economic reform and development efforts.”

In his presentation at the event, the Minister stressed that the financial market thrives on creativity and innovation and that it is essential to encourage investors to participate in this strategic opportunity.

While highlighting the positive outcomes already being seen from the current economic policies, Mr Edun noted that government revenue and expenditure have been significantly revamped, and the trade balance is improving.

He informed of the government’s efforts in revitalizing the agricultural sector, which is taking on a new and promising direction.

The Minister said further that the present administration’s successful interventions to reduce inflation and poverty, such as the removal of levies on food imports and the direct transfer of funds to the most vulnerable citizens. He stressed that this new bond initiative is another crucial step in bolstering Nigeria’s economy.

Edun underscored the importance of dollar funding, particularly in stabilizing the exchange rate, which he said is vital for the country’s economic stability.

Addressing the challenges faced by African nations in the international capital markets, the Minister explained that the rating systems often do not favour the continent. In response, he assured that Nigeria aims to take the lead.

The Minister expressed optimism that Nigeria is poised to become a continental financial hub, where other African nations can raise capital and drive economic growth.

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