Nigerian officials said all is set to inject the sum of 4 billion US dollars into the economy and finance the 2016 budget.
The officials said they are still working out the details of a new currency policy and may make an announcement within the next month, according to bond investors who met with a delegation led by Finance Minister Kemi Adeosun in London on Tuesday.
The central bank was represented at the London meetings by Alvan Ikoku, its director for trade and exchange.
Adeosun also that that Nigeria may issue a $1 billion Eurobond in the third quarter and that it was close to securing $3 billion of funding from the World Bank and African Development Bank.
The finance minister said the government was committed to a budget deficit of no more than 2.2 percent of gross domestic product this year despite the economy being on the verge of a recession.
Nigeria has sold dollar bonds twice, the last time in mid-2013, when it raised $1 billion of five- and 10-year debt. Yields on its $500 million of securities maturing in July 2023 fell one basis point to 7.49 percent by 5:30 p.m. in London and have dropped 1.2 percentage points this year.
Nigeria’s Eurobonds have gained 8.5 percent in 2016, compared with the average of 9.9 percent for high-yielding emerging-market sovereign dollar-debt tracked by Bloomberg.
Meanwhile the Debt Management Office(DMO) would today raise N105 billion through the reopening of three Federal Government Of Nigeria (FGN) bonds that had been previously issued with maturities ranging between five to 20 years, as the naira further declined in value to N361 to the dollar.
The debt office said it would raise N50 billion from the 12.4 per cent FGN Bond maturing in 2036, N40 billion on 12.5 per cent paper maturing in 2026 and N15 billion on 15.54 per cent FGN debt maturing in 2020.
Last month, the debt office had raised less than it planned as against N105 billion which it planned to raise, it was able to raise N52.5 billion.
It had raised N7.5 billion through the 15.54 per cent February 2020 FGN bond at 13.249 per cent as against N15 billion.
Also, N20 billion was raised from 12.5 per cent January 2026 FGN bond at 13.7430 per cent compared to N40 billion that was planned, while N25 billion was raised through the 12.40 March 2036 FGN bond instead of the N50 billion it meant to raise.
Meanwhile the value of the naira further declined to N361 the dollar at the parallel market from N357 to the dollar which it was at the close of business on Monday. The naira which soared to and remained stable at N350 in anticipation of the modalities of the flexible foreign exchange policy being adopted by the Central Bank of Nigeria (CBN) began to drop last week Friday selling at N361 to the dollar on Tuesday despite a rise in global oil price.
The CBN had said it would stop selling foreign exchange to oil marketers as they were expected to source their foreign exchange from the parallel market.
